Comparative Analysis of Support Vector Machine and EGARCH Modelling of Zenith Bank Plc. Stock Price on Economic Growth in Nigeria

Abstract

In this 21st century, stock exchange has become a crucial and determining factor for the global economy, any variability in this market affects personal, corporate financial activities and the economic growth a country. A lot of analysis using different models were explored by several authors. However, this study set out to investigates the statistical behaviour of Zenith Bank PLC stock price using Support Vector Machine (SVM) and EGARCH Model on economic growth in Nigeria by adopting quantitative techniques using the causal-comparative research method. The findings from this research shows a coefficient of the Zenith bank Low stock price at (0.546945) and high stock price at (0.453562) which indicates that low stock price is insignificant because is less than α = 0.05, while high stock price of greater than α = 0.05 is significant to predict the Zenith bank stock price. Findings from the study has further revealed that SVM mode approach is more appropriate than EGARCH model and recommends that stockholders, financial analyst and researchers who are investing in stock market should adapt the SVM model approach to determine the volatility rate or level of stochastic in the financial time series data.

Keywords: Stock Price, Support Vector Machine (SVM), EGARCH Model, Stock Exchange, Economic Growth