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Forecasting S&P 500 Movements - A comparison between Classical Methods and Neural Networks

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ARIMAvsLSTM

Forecasting S&P 500 Movements - A comparison between Classical Methods and Neural Networks

Introduction

I chose to analyze S&P 500 index over time. My project concludes with comparing an ARIMA model against a LSTM model. If I continue with this project, it would be interesting to see how Covid impacts how the S&P market moves. Why did I choose the S&P 500 index?

First, what is the S&P 500 Index?

The S&P 500 or Standard & Poor's 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The index is widely regarded as the best gauge of large-cap U.S. equities. Other common U.S. stock market benchmarks include the Dow Jones Industrial Average or Dow 30 and the Russell 2000 Index, which represents the small-cap index (https://www.investopedia.com/terms/s/sp500.asp).

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Forecasting S&P 500 Movements - A comparison between Classical Methods and Neural Networks

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