regression

[newbie]

I have daily prices for 50 stocks for the last 10 years and I have to predict the prices for all 50 stocks for the next 1 year. How can I go about this? I don't have much statistical knowledge, but can program Matlab. Can anyone suggest the best way to approach this? Should I be using regression?

 

[Tsotne]

I have daily prices for 50 stocks for the last 10 years and I have to predict the prices for all 50 stocks for the next 1 year. How can I go about this? I don't have much statistical knowledge, but can program Matlab. Can anyone suggest the best way to approach this? Should I be using regression?

Which kind of regression are you about? Model the stock prices with stochastic methods. Specifically assume the lognormal distribution for the deltaS/S and follow the brownian motion. Simulate the possible price paths and compute the revolving characteristics. That's how it is done in most cases.