A Model For Stock Price Prediction Using The Soft Computing Approach

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ABSTRACT

A number of research efforts had been devoted to forecasting stock price based on technical indicators which rely purely on historical stock price data. However, the performances of such technical indicators have not always satisfactory. The fact is, there are other influential factors that can affect the direction of stock market which form the basis of market experts’ opinion such as interest rate, inflation rate, foreign exchange rate, business sector, management caliber, investors’ confidence, government policy and political effects, among others. In this study, the effect of using hybrid market indicators such as technical and fundamental parameters as well as experts’ opinions for stock price prediction was examined. Values of variables representing these market hybrid indicators were fed into the artificial neural network (ANN) model for stock price prediction. The empirical results obtained with published stock data show that the proposed model is effective in improving the accuracy of stock price prediction. Also, the performance of the neural network predictive model developed in this study was compared with the conventional Box-Jenkins autoregressive integrated moving average (ARIMA) model which has been widely used for time series forecasting. Our findings revealed that ARIMA models cannot be effectively engaged profitably for stock price prediction. It was also observed that the pattern of ARIMA forecasting models were not satisfactory. The developed stock price predictive model with the ANN-based soft computing approach demonstrated superior performance over the ARIMA models; indeed, the actual and predicted value of the developed stock price predictive model were quite close.  

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APA

Library, T. & ARIYO, A (2021). A Model For Stock Price Prediction Using The Soft Computing Approach. Afribary. Retrieved from https://afribary.com/works/a-model-for-stock-price-prediction-using-the-soft-computing-approach

MLA 8th

Library, The Public Access, and ADEBIYI ARIYO "A Model For Stock Price Prediction Using The Soft Computing Approach" Afribary. Afribary, 22 May. 2021, https://afribary.com/works/a-model-for-stock-price-prediction-using-the-soft-computing-approach. Accessed 02 Oct. 2022.

MLA7

Library, The Public Access, and ADEBIYI ARIYO . "A Model For Stock Price Prediction Using The Soft Computing Approach". Afribary, Afribary, 22 May. 2021. Web. 02 Oct. 2022. < https://afribary.com/works/a-model-for-stock-price-prediction-using-the-soft-computing-approach >.

Chicago

Library, The Public Access and ARIYO, ADEBIYI . "A Model For Stock Price Prediction Using The Soft Computing Approach" Afribary (2021). Accessed October 02, 2022. https://afribary.com/works/a-model-for-stock-price-prediction-using-the-soft-computing-approach