Omnicom Stock Forecast - Simple Exponential Smoothing

OCN Stock  EUR 82.66  1.14  1.36%   
The Simple Exponential Smoothing forecasted value of Omnicom Group on the next trading day is expected to be 82.66 with a mean absolute deviation of 1.16 and the sum of the absolute errors of 70.96. Omnicom Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of Omnicom's historical fundamentals, such as revenue growth or operating cash flow patterns.
  
Omnicom simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Omnicom Group are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Omnicom Group prices get older.

Omnicom Simple Exponential Smoothing Price Forecast For the 25th of December

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Omnicom Group on the next trading day is expected to be 82.66 with a mean absolute deviation of 1.16, mean absolute percentage error of 2.96, and the sum of the absolute errors of 70.96.
Please note that although there have been many attempts to predict Omnicom Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Omnicom's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Omnicom Stock Forecast Pattern

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Omnicom Forecasted Value

In the context of forecasting Omnicom's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Omnicom's downside and upside margins for the forecasting period are 80.83 and 84.49, respectively. We have considered Omnicom's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
82.66
82.66
Expected Value
84.49
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Omnicom stock data series using in forecasting. Note that when a statistical model is used to represent Omnicom stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria119.1954
BiasArithmetic mean of the errors 0.1446
MADMean absolute deviation1.1633
MAPEMean absolute percentage error0.0126
SAESum of the absolute errors70.96
This simple exponential smoothing model begins by setting Omnicom Group forecast for the second period equal to the observation of the first period. In other words, recent Omnicom observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Omnicom

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Omnicom Group. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
80.8582.6684.47
Details
Intrinsic
Valuation
LowRealHigh
74.3986.6188.42
Details

Other Forecasting Options for Omnicom

For every potential investor in Omnicom, whether a beginner or expert, Omnicom's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Omnicom Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Omnicom. Basic forecasting techniques help filter out the noise by identifying Omnicom's price trends.

Omnicom Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Omnicom stock to make a market-neutral strategy. Peer analysis of Omnicom could also be used in its relative valuation, which is a method of valuing Omnicom by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Omnicom Group Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Omnicom's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Omnicom's current price.

Omnicom Market Strength Events

Market strength indicators help investors to evaluate how Omnicom stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Omnicom shares will generate the highest return on investment. By undertsting and applying Omnicom stock market strength indicators, traders can identify Omnicom Group entry and exit signals to maximize returns.

Omnicom Risk Indicators

The analysis of Omnicom's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Omnicom's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting omnicom stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Currently Active Assets on Macroaxis

Additional Information and Resources on Investing in Omnicom Stock

When determining whether Omnicom Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Omnicom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Omnicom Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Omnicom Group Stock:
Check out Historical Fundamental Analysis of Omnicom to cross-verify your projections.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Omnicom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.