markets (private practices) and states (public policies), pointing to the case of the European Union. …

-based methodology to defining market states and making asset allocation decisions with respect to both current and future state …, and covariance. The transitional dynamics of the derived states are modeled as a Markovian process. Asset weighting and …

determine an optimal number of states for the HMM. The selected four-state HMM is then used to predict monthly closing prices of …

) to choose the numbers of states from HMM.We then use the models to predict close prices of these three stocks using both …. The criteria tests’ results showed that HMM with two states worked the best among two, three and four states for the three …