Market Input Analysis

Abstract

Unlike most of physical systems, especially engineering systems, in which the system inputs are generally well-defined and structured to meet certain specifications and requirements, the stock market has too many input factors that might influence its internal behaviors and hence its outcomes. On the other hand, the output of the stock market, i.e., the market closing price used in our modeling process, is fixed once the market is closed and is relatively clean compared to its counterpart in the engineering systems, in which their outputs are normally coupled with measurement noises. This chapter focuses on the selection of appropriate input influential factors for the system adaptation framework under study.