ORCID

0000-0002-1476-113X (Chakraborty)

Document Type

Article

Publication Date

2025

DOI

10.20944/preprints202508.2017.v1

Publication Title

Preprints.org

Pages

1-23

Abstract

Introduction: The S&P consists of eleven business segments, which are classified according to the type of industry. The current study focuses on developing a non-linear analytical model for the Healthcare Business Segment (HBS) of the S&P 500, as a function of different economic & financial indicators. Materials and Methods: The analytical model used six financial indicators together with four economic indicators to predict the weekly average closing price (WCP) of HBS stocks. Johnson’s SB transformation corrected skewness, while desirability-based optimization identified indicator values maximizing WCP. The model’s performance and generalizability were validated through repeated 10-fold cross-validation. Results: All attributable contributors were ranked in accordance with the percentage of contribution to the WCP. The cross-validated R2s and RMSEs were found to be consistent across each fold for the proposed analytical model. The R2 (96.74%) and adjusted R2 (96.03%) were found to be high and consistent for the test (unseen) dataset. Discussions: The analytical modeling produces vital information that helps investors and portfolio managers, and financial institutions evaluate healthcare industry investments in the S&P 500. The optimization strategy helps identify the best controllable factors, which leads to more precise and strategic decision-making Patents: This paper has also been submitted for a US provisional patent on 31 May 2023 (TTO ref. 23T220PR-CS).

Rights

© 2025 by the Authors.

This open access article is published under a Creative Commons Attribution 4.0 International (CC BY 4.0) License, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.

Comments

This version is not peer reviewed.

Original Publication Citation

Chakraborty, A., & Tsokos, C. (2025). A modern optimization approach with data-driven analytical modeling for the Healthcare Business Segment (HBS) from the S&P 500. Preprints.org. https://doi.org/10.20944/preprints202508.2017.v1

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