DJIA & the price of a random stock

If I have tracked the closing value of the DJIA, the price of specific stock and the date. Would it be possible to use regression analysis techniques to predict the price of the specific stock. using the date and the DJIA as independent variables? As an example here is the data for the DJIA and a stock.

Stock DJIA
39.17 12134.68
39.44 12127.88
39.87 12116.91
39.38 12002.37
39.56 12011.73
39.01 11992.68
39.06 11950.02
38.76 11980.59

I understand how to use regression analysis using two related variables, I'm unclear how to use the data from two variables to predict a third, seemingly unrelated value.

ramon said:

I understand how to use regression analysis using two related variables, I'm unclear how to use the data from two variables to predict a third, seemingly unrelated value.

Click to expand...

You need to look up "Multiple Linear Regression". I typed that phrase in a search engine and received nearly 1.5 million hits. Let's see your first results.

If you're trying to find a formula for beating the stock market, there isn't one.

Eliz.

tkhunny said:

ramon said:

I understand how to use regression analysis using two related variables, I'm unclear how to use the data from two variables to predict a third, seemingly unrelated value.

Click to expand...

You need to look up "Multiple Linear Regression". I typed that phrase in a search engine and received nearly 1.5 million hits. Let's see your first results.

Click to expand...

TK thanks so much, this is exactly what I looking for, but didn't know the proper term. Thanks so much!

r

I would be very careful especially if you plan on acting on your predictions.