Karachi Stock Exchange Price Prediction using Machine Learning Regression Techniques

Authors

  • Mazhar Hameed North University of China image/svg+xml
  • Khurum Iqbal National University of Science and Technology, Rawalpindi
  • Rozaida Ghazali Tun Hussein Onn University of Malaysia image/svg+xml
  • Fawwad Hassan Jaskani Islamia University of Bahawalpur image/svg+xml
  • Zunaira Saman Ghazi University image/svg+xml

DOI:

https://doi.org/10.4108/eai.24-8-2021.170753

Keywords:

LSTM, LR, Machine Learning

Abstract

Accurate stock market returns are quite difficult for the company because of the unpredictable and non-linear nature of the financial stock markets. With the development of artificial intelligence and increased computer power, programmed prediction approaches have demonstrated that they are increasingly effective in predicting stock values. In this study, the Artificial Neural Network, LSTM, and LR techniques were used to predict the closing price for the following day for five companies belonging to different business sectors. In today's economy, the stock market or equity market has a profound influence. The prediction of stock prices is quite complex, chaotic, and it is a big challenge to have a dynamic environment. Behavioural finance means that investors' decision-making processes are affected by emotions and attitudes in response to particular news. In order to help investors' judgements, we have supplied a technology for the analysis of the stock exchange. The method combines historical price prediction. For predicting, LSTM (Long Short-Term Memory), ANN and LR are employed. It includes the latest information on trade and analytical indicators. Financial data: Open, high, low and close stock prices are used to build new variables needed for model input. The models are validated with standard strategic indicators: RMSE and MAPE. The low values of these two variables indicate that the models are cost-effective.

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Published

24-08-2021

How to Cite

1.
Hameed M, Iqbal K, Ghazali R, Jaskani FH, Saman Z. Karachi Stock Exchange Price Prediction using Machine Learning Regression Techniques. EAI Endorsed Trans Creat Tech [Internet]. 2021 Aug. 24 [cited 2024 Apr. 18];8(28):e5. Available from: https://publications.eai.eu/index.php/ct/article/view/1420