A Comparison of Stock Price Prediction with ANN and ARIMA

Author:

Ma Bowen,Yang Yanchi,Zhang Jiaming,Zhang Keli

Abstract

Nvidia is one of the most competitive companies in the semiconductor industry, whose stock has risen a remarkable 5,427% in the past decade. Forecasting its stock price has always been one of the most important topics for investors, as its stock price fluctuates dramatically with the release of new products and the rising price of cryptocurrencies worldwide. This paper compares the degree of accuracy of ANN and ARIMA, which are considered to be the most commonly used and accurate models in stock price forecasting for the past 20 years, in predicting Nvidia's stock price. The time period chosen for the prediction is from June 2020 to June 2021, when Nvidia's stock price rises sharply, and the data is obtained from Kaggle and Yahoo Finance. According to the analysis, the ANN model is clearly capable of predicting the sharp fluctuations in Nvidia's stock price between 2020 and 2021, which also indicates the potential of artificial neural network-based models for stock price predictions. These results shed light on guiding further exploration of stock price prediction.

Publisher

Boya Century Publishing

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