Research on Price Prediction of Stock Price Index Based on Combination Method with Introduction of Options Market Information

This study establishes a combination method-based prediction model for the CSI 300 stock index price embedded with options market information. Firstly, utilizing options and spot market information, a BP neural network is employed to predict the CSI 300 stock index price. Secondly, a logical framewo...

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Bibliographic Details
Main Authors: Yi Hu, Xin Sui, Qi Zhang, Wei Zhang
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Information
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Online Access:https://www.mdpi.com/2078-2489/16/4/328
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Summary:This study establishes a combination method-based prediction model for the CSI 300 stock index price embedded with options market information. Firstly, utilizing options and spot market information, a BP neural network is employed to predict the CSI 300 stock index price. Secondly, a logical framework based on a combination method is constructed to further optimize the CSI 300 stock index price prediction through decomposition–clustering, error adjustment, and weighted integration approaches. The results demonstrate the following: (1) Compared to price predictions based solely on spot market information, the introduction of options market information significantly enhances the forecasting performance for the CSI 300 index price. (2) From the perspective of options moneyness classification, after incorporating options information, different types of options contracts exhibit varying impacts on the CSI 300 index price prediction. Prior to optimization, predictions incorporating in-the-money call options with maximum trading volume yield the optimal performance based on the MSE metric. (3) Under the logical framework of the combination method, the prediction effect for the CSI 300 stock index price is gradually improved after introducing the decomposition–clustering method, the error adjustment method, and the price-weighted integration method, which shows that it is appropriate to use the combination method to optimize the price prediction. Overall, this study proposes a combination method for price forecasting incorporating options market information across diverse contract types. It allows for weighted integration of prediction results derived from various options information, offering a novel research angle for spot market price prediction. The study also underscores the importance of implicit information mining and multi-market information fusion for price prediction, which is expected to become a key research focus in this field.
ISSN:2078-2489