Time series forecasting of price of financial instrument [closed]

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I am working with a financial instrument's intraday time series data. I have to predict the price of a financial instrument on the basis of some statistical parameters(Var1, Var2, Var3) and of time series intraday(Obeserv.1, Observ.2.......Observ.80) data of the previous period. I have to predict the price of financial instrument in 81st period.

All lines in the table are mixed so that the information in any i-line is useless for prediction of the j-line.

I am planning to solve this problem by using R. I am new into this financial modelling field. What approach I can take for prediction. Please help me out for this.

Data set looks like that

Sample Data

Answer 1

In the past I've done this kind of thing for a living. The general concept is to think of a model that would have some predictive power, then fit e.g. the first half of the data set to the model, and finally test to see whether the model has any predictive power on the second half of the data set.

If you haven't tried anything before, a good place to start is with ARMA models, (see e.g. AutoRegressive–Moving-Average model on wikipedia).