An evaluation of alternative forecasting models for natural rubber prices

One of the prominent features of the Natural Rubber (NR) market is its price variability, and the aim of this study is to project accurate short-term NR prices. This is accomplished by exploiting the use of forecasting techniques and information sets to seek the combination with the best forecasts,...

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Main Author: Lim, Jit Yang
Format: Thesis
Language:English
Published: Curtin University 2002
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/1731
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author Lim, Jit Yang
author_facet Lim, Jit Yang
author_sort Lim, Jit Yang
building Curtin Institutional Repository
collection Online Access
description One of the prominent features of the Natural Rubber (NR) market is its price variability, and the aim of this study is to project accurate short-term NR prices. This is accomplished by exploiting the use of forecasting techniques and information sets to seek the combination with the best forecasts, and exploring best ways of combining forecasts. We evaluate the relative performance of 19 models based upon three different forecasting techniques, and four information sets. In addition, we compare their forecasts with 13 other forecasts combined in various different ways, and taking the Naive forecast as benchmark. The generalised autoregressive conditional heteroscedasticity regression (or ARCH-type) models, though more complex, are generally better than the simpler regression models. In general, the performance of the various techniques seems to perform consistently well (or poorly) over the forecasting horizons, with alternations in performance due mainly to the type of information set used. We also adopted a simple trading rule to find out the economic values of our forecasts, and the results are most promising. Importantly, the forecasts generated from the alternative models developed in this study can potentially be beneficial to participants in the NR futures market.
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spelling curtin-20.500.11937-17312017-02-20T06:38:35Z An evaluation of alternative forecasting models for natural rubber prices Lim, Jit Yang natural rubber market forecasting prices One of the prominent features of the Natural Rubber (NR) market is its price variability, and the aim of this study is to project accurate short-term NR prices. This is accomplished by exploiting the use of forecasting techniques and information sets to seek the combination with the best forecasts, and exploring best ways of combining forecasts. We evaluate the relative performance of 19 models based upon three different forecasting techniques, and four information sets. In addition, we compare their forecasts with 13 other forecasts combined in various different ways, and taking the Naive forecast as benchmark. The generalised autoregressive conditional heteroscedasticity regression (or ARCH-type) models, though more complex, are generally better than the simpler regression models. In general, the performance of the various techniques seems to perform consistently well (or poorly) over the forecasting horizons, with alternations in performance due mainly to the type of information set used. We also adopted a simple trading rule to find out the economic values of our forecasts, and the results are most promising. Importantly, the forecasts generated from the alternative models developed in this study can potentially be beneficial to participants in the NR futures market. 2002 Thesis http://hdl.handle.net/20.500.11937/1731 en Curtin University fulltext
spellingShingle natural rubber market
forecasting prices
Lim, Jit Yang
An evaluation of alternative forecasting models for natural rubber prices
title An evaluation of alternative forecasting models for natural rubber prices
title_full An evaluation of alternative forecasting models for natural rubber prices
title_fullStr An evaluation of alternative forecasting models for natural rubber prices
title_full_unstemmed An evaluation of alternative forecasting models for natural rubber prices
title_short An evaluation of alternative forecasting models for natural rubber prices
title_sort evaluation of alternative forecasting models for natural rubber prices
topic natural rubber market
forecasting prices
url http://hdl.handle.net/20.500.11937/1731