An optimal model for predicting Hang Send Index with its volatility.
The model uses machine learning to adopt four volatility models, GARCH family model, SV-T model, HARlnRV model, and SABR model with 500 trading days data from trading prices of the Hang Seng Index.
The result of the model shows it is a volatility back-test with defining the model as a volatility threshold in Black-Scholes implied volatility, a standard constant holds a regular version of future market sentiment to determine the spread pattern.