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Academic Journal of Mathematical Sciences, 2022, 3(2); doi: 10.25236/AJMS.2022.030205.

How Can Random Walk Be Applied to Analysis Stock

Author(s)

PUI SHUEN NG1, Jingjing Suo2

Corresponding Author:
PUI SHUEN NG
Affiliation(s)

1Guangzhou Tianxing Experimental School, Guangzhou, China 

2University of Science and Technology of China, Hefei, China

Abstract

This paper discuss how the model of random walk applies in analyzing the stock price. Firstly, the graph of symmetric random walk and the graph of the stock price of the company AMD are shown to observe the similarity of them directly. Secondly, we give the stock price model driven by random walk theoretically. The result of our research helps us to understand the application of random walk on analyzing the stock price by deriving the equations.

Keywords

Random walk, Stock price, mathematics

Cite This Paper

PUI SHUEN NG, Jingjing Suo. How Can Random Walk Be Applied to Analysis Stock. Academic Journal of Mathematical Sciences (2022) Vol. 3, Issue 2: 29-34. https://doi.org/10.25236/AJMS.2022.030205.

References

[1] Lawler, Gregory F., and Vlada Limic. Random walk: a modern introduction. Vol. 123. Cambridge University Press, 2010.

[2] Cox, John C., Stephen A. Ross, and Mark Rubinstein. ”Option pricing: A simplified approach.” Journal of financial Economics 7.3 (1978): 229-263.

[3] Fischer, Hans. A history of the central limit theorem: from classical to modern probability theory. New York: Springer, 2011.