Stock market predictions are yet another use case for time series analysis. Investors can make an educated guess about stocks by analyzing data. Though non-mathematical components like the history of the company do play a art in stock market predictions, they largely depend on the historic stock market trends. We can do a trend analysis of the historic trade-in prices of different stocks and use predictive analytics to predict future prices. Such analytics need data points, that is, stock prices at each hour over a trading period. Quantitative analysts and trading algorithms make investment decisions using these data points by performing time series analysis.
The following diagram shows a time series using historic stock data to make predictions:
