Predictive stock market analysis for Japanese textile companiesusing ARIMA model

Predicting the stock prices of Japanese textile companies is crucial for several reasons. First, stock price trends provide valuable insight into the financial health and growth potential of these firms, especially in an industry subject to evolving consumer trends, technological advancements, and global competition. Investors rely on stock price predictions to make informed decisions, helping them maximise returns and manage risks effectively. The study aims to predict the stock prices of Japanese Textile Companies using the ARIMA Model by taking the top 10 textile companies listed on the Tokyo Stock Exchange (TSE) for a span of 10 years, i.e. 2014 to 2023. Upon evaluation of models, it was found that most of the corporations had either a negative impact or no impact of past lagged values on their present value, except for Global Style, which had a positive influence, maybe due to its distinct nature of textile products in comparison to other corporations. Similarly, Itochu was 91% affected by its own past lagged values, maybe due to its huge operations in textiles as well as other sectors distinct from textiles. Mostly due to lagged value of past residuals, all the corporations were negatively affected, but Global Style, Kuraray, Itochu and Yagi were positively impacted, and there was a huge impact seen in terms of Itochu.