Mining stock price data
In theory, we can apply regression techniques to predicting prices of a particular stock. However, it's difficult to ensure the stock we pick is suitable for learning purposes—its price should follow some learnable patterns and it can't have been affected by unprecedented instances or irregular events. Hence, we'll herein be focusing on one of the most popular stock indexes to better illustrate and generalize our price regression approach.
Let's first cover what an index is. A stock index is a statistical measure of the value of a portion of the overall stock market. An index includes several stocks that are diverse enough to represent a section of the whole market. And the price of an index is typically computed as the weighted average of the prices of selected stocks.
The Dow Jones Industrial Average (DJIA) is one of the longest established and most commonly watched indexes in the world...