• DocumentCode
    668548
  • Title

    Stocks market prediction using Support Vector Machine

  • Author

    Zhen Hu ; Jie Zhu ; Ken Tse

  • Author_Institution
    Marketing Dept. of Bus. Sch., Sun Yat-sen Univ., Guangzhou, China
  • Volume
    2
  • fYear
    2013
  • fDate
    23-24 Nov. 2013
  • Firstpage
    115
  • Lastpage
    118
  • Abstract
    A lot of studies provide strong evidence that traditional predictive regression models face significant challenges in out-of sample predictability tests due to model uncertainty and parameter instability. Recent studies introduce particular strategies that overcome these problems. Support Vector Machine (SVM) is a relatively new learning algorithm that has the desirable characteristics of the control of the decision function, the use of the kernel method, and the sparsity of the solution. In this paper, we present a theoretical and empirical framework to apply the Support Vector Machines strategy to predict the stock market. Firstly, four company-specific and six macroeconomic factors that may influence the stock trend are selected for further stock multivariate analysis. Secondly, Support Vector Machine is used in analyzing the relationship of these factors and predicting the stock performance. Our results suggest that SVM is a powerful predictive tool for stock predictions in the financial market.
  • Keywords
    financial management; forecasting theory; macroeconomics; regression analysis; stock markets; support vector machines; SVM; decision function; financial market; kernel method; learning algorithm; macroeconomic factor; model uncertainty; parameter instability; predictive regression model; stock market prediction; stock multivariate analysis; stock trend; support vector machine; Biological system modeling; Companies; Investment; Predictive models; Stock markets; Support vector machines; Training; data mining; forecasting; multivariate classification; stock classification; support vector machine;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Information Management, Innovation Management and Industrial Engineering (ICIII), 2013 6th International Conference on
  • Conference_Location
    Xi´an
  • Print_ISBN
    978-1-4799-3985-5
  • Type

    conf

  • DOI
    10.1109/ICIII.2013.6703096
  • Filename
    6703096