Prediction Models for Financial Products

Abstract

Stock market is difficult to predict, yet people invest money thinking that they newlinewould get good returns out of their investment, which seems a reasonable newlineproposition: but how would one expect or guarantee 100% returns based on newlinepredictions. As the stock market is too complex and dynamic, a lot of newlineparameters do influence stock predictions. Therefore, it gives an opportunity to newlineexplore, if prediction of the stock market with technological applications be newlinepossible, particularly in computations. This reason alone necessitates newlinedeveloping an appropriate predicting model using Artificial Intelligence. As the newlineinvestor hardly has time to analyze the financial market based on their ability to newlineunderstand, he fails to make intelligent investment decisions. newlineOver the years, the researchers have been working hard to establish more newlineefficient ways and means which can help improving the future predictions. But, newlinehow best to develop a model and implement its protocols which can provide an newlineacceptable level of accuracy, efficiency and scalability in stock market newlinepredictions. This has remained the sole objective of the research work, newlinetherefore, while undertaking the study, a comprehensive comparative analysis newlinehave been taken to identify the gap so as to develop an effective model. For this, newlineboth fundamental and technical analysis has been taken into consideration. newlineThe analytical part of the fundamental study identifies the online published newlinefinancial market related news, and they are sector specific or policies of newlinegovernmental from reliable online sources. After gathering news feeds, the newlineimpact of particular news on specific stocks are identified using the text mining newlinesemantic analytical approach, like the noun phrase, dictionary approach, bag of newlinewords and TF-IDF. These approaches have been applied to identify the impact newlineby modifying the mechanism of term frequency invert document frequency newlineimpact calculation. newlinePrediction Models for Financial Products IV newlineSimilarly, in technical analysis, all historical related numeric data with regard to newline