Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management

The increasing array of financial assets and investment opportunities nowadays is making investors consider new ways of investment portfolio formation and management. Many choose to take advantage of a wide variety of forecasting models in order to enhance investment portfolio performance results. H...

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Main Authors: Brolinska Iryna, Žilinskij Grigorij
Format: Article
Language:English
Published: Sciendo 2025-06-01
Series:Economics and Culture
Subjects:
Online Access:https://doi.org/10.2478/jec-2025-0009
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author Brolinska Iryna
Žilinskij Grigorij
author_facet Brolinska Iryna
Žilinskij Grigorij
author_sort Brolinska Iryna
collection DOAJ
description The increasing array of financial assets and investment opportunities nowadays is making investors consider new ways of investment portfolio formation and management. Many choose to take advantage of a wide variety of forecasting models in order to enhance investment portfolio performance results. However, each forecasting model has its application peculiarities, strengths, weaknesses and distinctive features. This paper offers a methodological basis and evaluation of the application of the ARIMA forecasting model in investment portfolio formation and management. The purpose of the research is to evaluate the effectiveness of ARIMA model predictions in investment portfolio creation and management.
format Article
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institution Kabale University
issn 2256-0173
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publishDate 2025-06-01
publisher Sciendo
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series Economics and Culture
spelling doaj-art-903f65e68b1e4e778d6a0277b6f4729d2025-08-20T03:27:35ZengSciendoEconomics and Culture2256-01732025-06-0122110812210.2478/jec-2025-0009Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and ManagementBrolinska Iryna0Žilinskij Grigorij11Vilnius Gediminas Technical University, Vilnius, Lithuania2Vilnius Gediminas Technical University, Vilnius, LithuaniaThe increasing array of financial assets and investment opportunities nowadays is making investors consider new ways of investment portfolio formation and management. Many choose to take advantage of a wide variety of forecasting models in order to enhance investment portfolio performance results. However, each forecasting model has its application peculiarities, strengths, weaknesses and distinctive features. This paper offers a methodological basis and evaluation of the application of the ARIMA forecasting model in investment portfolio formation and management. The purpose of the research is to evaluate the effectiveness of ARIMA model predictions in investment portfolio creation and management.https://doi.org/10.2478/jec-2025-0009investment portfolioarima modelforecastingactive managementg12g17
spellingShingle Brolinska Iryna
Žilinskij Grigorij
Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
Economics and Culture
investment portfolio
arima model
forecasting
active management
g12
g17
title Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
title_full Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
title_fullStr Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
title_full_unstemmed Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
title_short Evaluation of Effectiveness of Arima Model Predictions in Investment Portfolio Formation and Management
title_sort evaluation of effectiveness of arima model predictions in investment portfolio formation and management
topic investment portfolio
arima model
forecasting
active management
g12
g17
url https://doi.org/10.2478/jec-2025-0009
work_keys_str_mv AT brolinskairyna evaluationofeffectivenessofarimamodelpredictionsininvestmentportfolioformationandmanagement
AT zilinskijgrigorij evaluationofeffectivenessofarimamodelpredictionsininvestmentportfolioformationandmanagement