Equilibrium model predicts stock price trends with high accuracy.
The study shows that when stock prices go down one day, they tend to go up the next day. This pattern is normal and can be explained by how people buy and sell stocks. By looking at past data, the researchers found that this up-and-down movement in stock prices is likely due to how investors behave. This means that the way stock prices change over time is not random, but follows a predictable pattern.