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A Differential Equations Analysis of Stock Prices

In: Economic and Financial Challenges for Eastern Europe

Author

Listed:
  • Georgios Katsouleas

    (Piraeus University of Applied Sciences)

  • Miltiadis Chalikias

    (Piraeus University of Applied Sciences)

  • Michalis Skordoulis

    (Piraeus University of Applied Sciences)

  • Georgios Sidiropoulos

    (Piraeus University of Applied Sciences)

Abstract

Stock price analysis is one of the most important issues concerning investments and financial decision-making. Thus, stock price analysis and estimation models can be very useful in the estimation of a firm’s financial development. The aim of this paper is to propose a model of differential equations that will be able to be applied in the case of stock price analysis and estimation. The differential equations model will be based on Lanchester’s combat model, a mathematical theory of war. In the field of business, such operations research models have been used in cases such as competition analysis and resources allocation optimization. The case to be examined in this paper refers to the healthcare services index stocks of the Athens Stock Exchange. A 7 × 7 differential equations model was developed to analyze the examined firms’ stocks.

Suggested Citation

  • Georgios Katsouleas & Miltiadis Chalikias & Michalis Skordoulis & Georgios Sidiropoulos, 2019. "A Differential Equations Analysis of Stock Prices," Springer Proceedings in Business and Economics, in: Nicos Sykianakis & Persefoni Polychronidou & Anastasios Karasavvoglou (ed.), Economic and Financial Challenges for Eastern Europe, pages 361-365, Springer.
  • Handle: RePEc:spr:prbchp:978-3-030-12169-3_23
    DOI: 10.1007/978-3-030-12169-3_23
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