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Evaluation of the Predictive Validity of the CapitalCubeâ„¢ Market Navigation Platform

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  • Edward J. Lusk

Abstract

IntroductionThis is the fourth research report where various aspects of the CapitalCubeâ„¢ Market Navigation Platform [CCMNP] of AnalytixInsightâ„¢ have been examined.Previous ResultsIn our previous three studies, we have tested many of the CCMNP-variables as expressed through the S&P500; we have rejected the Nulls of their inter-and intra-group association in favor of the likelihood that the variables that constitute the CCMNP are not produced by random generating processes. This suggests that the CCMNP is capable of creating market relevant information that may inform the investment decision.Current Study The previous results beg the question that is the focus of this report- Given the Non-Random character of the various CCMNP panel variables, does this panel of information enable the identification of a particular stock that will, in the near future, experience a turning-point?Results-We find no evidence that the CCMNP aids in detecting turning-points for the S&P500 Panel of data tested. Various caveats to this study are detailed in the summary section of this research report. Finally, we offer that the methodology used in investigating the CCMNP is a simple, transparent, and useful model for evaluating the acuity of a MNP in detecting turning-points.

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  • Edward J. Lusk, 2018. "Evaluation of the Predictive Validity of the CapitalCubeâ„¢ Market Navigation Platform," Accounting and Finance Research, Sciedu Press, vol. 7(3), pages 1-39, August.
    • Handle: RePEc:jfr:afr111:v:7:y:2018:i:3:p:39
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    References listed on IDEAS

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    2. Nyberg, Henri, 2013. "Predicting bear and bull stock markets with dynamic binary time series models," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3351-3363.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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