The objective is to build models that predict stock price movements across different time scales and price thresholds. The model will generate a Buy/Sell/Hold recommendation based on these predictions.
- Buy: The stock is expected to exceed a specified threshold.
- Sell: The stock is expected to underperform by a specified threshold.
- Hold: The stock is expected to fluctuate between the Buy and Sell thresholds.
- Future time: 2 weeks
- Buy Threshold: 5%
- Sell Threshold: 5%
Interpretation:
The model outputs a Buy recommendation if it predicts that the stock price will increase by 5% or more within the next 2 weeks.