Research and Analysis on Stock Investment of Liaoning Chemical Industry Based on Geometric Brownian Motion

Yanling Li, Yuhan Song, Yuting Ha, Ruotong Sun, Yuzhe Zhang, Yue Chen, Dandan Chen

2022

Abstract

This paper examines the feasibility of using Geometric Brownian motion models to simulate prices and how to use Geometric Brownian motion models to invest in stocks. Based on the historical closing prices of stocks from September 1, 2019, to September 1, 2022, the Geometric Brownian motion model is built using Python, based on Geometric Brownian motion 2023 prices from September 1 to October 1, future trends in Liaoning chemical industry stocks were analyzed. To verify the accuracy of the model, we used historical prices from January to February 2022 to simulate prices from February to March 2022 using a Geometric Brownian motion model. Comparing the predicted value with the real value, the error rate is less than 20%, which indicates that the model is feasible. The visualization results and data from the Geometric Brownian motion simulation data show that under the assumptions of the Geometric Brownian motion model, the future development of the Liaoning chemical industry’s stock is relatively stable, the share price of Fengguang shares is on an upward trend, so investment may be considered.

Paper Citation

in Harvard Style

Li Y., Song Y., Ha Y., Sun R., Zhang Y., Chen Y. and Chen D. (2022). Research and Analysis on Stock Investment of Liaoning Chemical Industry Based on Geometric Brownian Motion. In Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME; ISBN 978-989-758-636-1, SciTePress, pages 522-528. DOI: 10.5220/0012036000003620

in Bibtex Style

@conference{icemme22,
author={Yanling Li and Yuhan Song and Yuting Ha and Ruotong Sun and Yuzhe Zhang and Yue Chen and Dandan Chen},
title={Research and Analysis on Stock Investment of Liaoning Chemical Industry Based on Geometric Brownian Motion},
booktitle={Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME},
year={2022},
pages={522-528},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012036000003620},
isbn={978-989-758-636-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME
TI - Research and Analysis on Stock Investment of Liaoning Chemical Industry Based on Geometric Brownian Motion
SN - 978-989-758-636-1
AU - Li Y.
AU - Song Y.
AU - Ha Y.
AU - Sun R.
AU - Zhang Y.
AU - Chen Y.
AU - Chen D.
PY - 2022
SP - 522
EP - 528
DO - 10.5220/0012036000003620
PB - SciTePress