Predicting the Trend of Dollar/Naira Exchange Rate Using Regression Model and Support Vector Machine

Abstract

The stock market is a network that provides a platform for nearly all major economic transactions in the world at a dynamic rate referred to as the stock worth that is predicated on market equilibrium. Predicting this stock value offers huge arbitrage profit opportunities that are the enormous motivation for analysis during this space. Knowledge of a stock value beforehand by even a fraction of a second can result in high profits, machine learning technique has proven to be effective in stock market prediction, especially in the stock exchange-traded fund and index exchange-traded fund, but little effort has been extended to the prediction of the currency exchange-traded fund using the linear regression and support vector machine, In this study, the trend of the exchange rate of DOL/NGN was predicted from the exchange rate value generated using the linear regression and support vector Machine. The accuracy of the prediction from the Linear Regression model and support vector machine was analyzed using performance metrics.