Why Min, Max, Opening, and Closing Stock Prices Are Empirically Most Appropriate for Predictions, and Why Their Linear Combination Provides the Best Estimate for Beta

While we have moment-by-moment prices of each stock, we cannot use all this information to predict the future stock prices, we need to combine them into a few characteristics of the daily stock price. Empirically, it turns out that the best characteristics are the lowest daily price, the highest daily price, the opening price, and the closing price. In the paper, we provide a theoretical explanation for this empirical phenomenon. We also explain why empirically, it turns out that the best way to find the stock\u27s beta coefficient is to consider a convex combination of the about four characteristics