FORECASTING FREEPORT-MCMORAN STOCK PRICE USING LOCALLY STATIONARY WAVELET

Abstract

PT Freeport Indonesia is the manager of the Grasberg Mine in Papua, Indonesia, which is one of the largest gold
mines in the world. This mine also contains copper and silver for the world market. Freeport McMoRan's
shareholder has recently trending topic because its shares have been purchased by the Indonesian government.
This stock price value has a very high volatility and tend not stationary. Wavelet transformation is capable of
representing functions that are not smooth or have high volatility. Locally Stationary Wavelet (LSW) is a
forecasting model by minimizing error values and capturing most of the time series data information. In this
research we can get stock price of Freeport-McMoran stationary after differencing. Stock price forecasting using
LSW yields a small MAPE value of 1.94%. This indicates that the LSW model is good for forecasting using
stock price data.
Keywords: Freeport McMoRan, Stasionary, LSW, MAPE