Affiliation:
1. School of Computer Science, Central South University, Changsha 410083, China
Abstract
Machine learning has been proven to be very effective and it can help to boost the performance of stock price predictions. However, most researchers mainly focus on the historical data of stocks and predict the future trends of stock prices by designing prediction models. They believe that past data must hide useful information in the future. Due to the lack of human participation, the result of this practice must be accidental. To solve this problem, we propose a novel model called Convolutional Neural Network with Sentiment Check (CNN-SC) in this paper. The model recommended by the authors refers to and expands upon the ideas of experts, and then takes the sentiment value in expert comments as the basis for stock price prediction. This model reflects the humanization of stock price prediction and eliminates the problem of a lack of supervision in machine learning. To demonstrate the effectiveness of our novel method, we compare it with five other popular and excellent methods. Although the C-E-SVR&RF and GC-CNN models are also quite effective, our results indicate the superiority of CNN-SC and it is accurately used to calculate the short-term (seven days later) stock price fluctuation of a single stock.
Subject
Electrical and Electronic Engineering,Computer Networks and Communications,Hardware and Architecture,Signal Processing,Control and Systems Engineering
Reference24 articles.
1. Investments in companies with negative equity: The return is worth the risk?;Cescon;Rev. Gestão Organ.,2021
2. Impact of U.S. presidential elections on stock markets’ volatility: Does incumbent president’s party matter?;Mnasri;Financ. Res. Lett.,2021
3. Kramer, L. (2023, January 01). How Is a Company’s Stock Price and Market Capitalization Determined?. Available online: https://www.investopedia.com/ask/answers/how-companys-stock-price-and-market-cap-determined.
4. How oil price shocks affect investor sentiment: New evidence from China;Li;Appl. Econ. Lett.,2021
5. Topic identification of text-based expert stock comments using multi-level information fusion;Zhao;Expert Syst.,2020