New model beats competitors in predicting stock market volatility!
The researchers studied a new way to predict how prices in the stock market will change. They used a model that looks at short-term and long-term factors that affect how volatile the market is. By testing this model with real data, they found that it was better at predicting future prices compared to other models. In particular, using housing starts as a factor in the model gave the most accurate predictions for prices 2 to 3 months in advance.