Stock market prediction has become an attractive investigation topic due to its important role in economy and beneficial offers. There is an imminent need to uncover the stock market future behavior in order to avoid investment risks. The large amount of data generated by the stock market is considered a treasure of knowledge for investors. This study aims at constructing an effective model to predict stock market future trends with small error ratio and improve the accuracy of prediction. This prediction model is based on sentiment analysis of financial news and historical stock market prices. This model provides better accuracy results than all previous studies by considering multiple types of news related to market and company with historical stock prices. A dataset containing stock prices from three companies is used. The first step is to analyze news sentiment to get the text polarity using naï ve Bayes algorithm. This step achieved prediction accuracy results ranging from 72.73% to 86.21%. The second step combines news polarities and historical stock prices together to predict future stock prices. This improved the prediction accuracy up to 89.80%.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.