SRM INSTITUTE OF SCIENCE AND TECHNOLOGY

SCHOOL OF COMPUTING
DEPARTMENT OF COMPUTING TECHNOLOGIES
18CSP109L - MAJOR PROJECT

Stock Price Prediction of long term share

prices contrasting LSTM and Sentiment
Analysis

Batch ID: B449

Student 1 Reg. No:RA1911003010036
Guide name: Dr. Bibin Christopher Student 1 Name: Varun Sangwan
Designation: Assistant Professor
Student 2 Reg. No: RA1911003010212
Department: CTech
Student 2 Name: Vishesh Kumar
 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Conclusion of Minor Project and proposed future work

The unpredictability of the stock market stretches far beyond the conventional analysis systems like
fundamental and timed analysis used to make sense of it. Business Deals, Changes in power in different
nations, World changing events, Wars, Global catastrophes and Natural Disasters etc have a profound
impact on the outputs that a company can generate and thus affect the movement and actual value of
the stock in real-time.

Sentiment Analysis is a feature that uses news reports, social media mentions etc to predict the uptrend
/ downtrend in stock prices which can in turn affect indices etc. It basically is a mathematical expression
of how the general feeling around the company’s share price is going to be in the long / short term. In
the above project we will use a very basic algorithm on sentiment analysis with a clear focus on timed
and fundamental analysis of the share price. Sentiment Analysis procedures can be expanded upon to
create a clear framework of how the stock is influences by world events to create a more accurate
prediction system regarding the price of a company’s stock.

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Abstract

• Stock Price prediction has been a hot topic for many years now and it’s integration with
modern technology – particularly Machine Learning Algorithm (Quant models as they
are referred to in the financial world).
• Research has shown that Machine Learning Models particularly with the use of
Recursive Neural Networks (RNN) and Long Term Short Memory (LSTM) when applied
to historical data of stocks can be used to predict short-term stock prices .
• However, another contrasting approach to Prediction by using past share prices is the
sentiment analysis of the company in question – using NLP to predict the
upward/downward trend in the share price.
• Our model applies companies projections as well as sector performances and how
the given company fares accordingly to correctly predict stock prices for both short and
long term goals.

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Introdution

• The main motive to correctly predict stock values and prices in the short and long
term is to maximise your potential earnings rather than relying on tips. A huge
amount of research has gone into developing Machine Learning models that are
capable of correctly predicting stock prices and have been used by hedge funds
and investment banks for quite some time now.
• However these models are mainly used to predict short term prices so that they
can be utilised in intraday trading and most long term models generally focus on
indices and option chains.
• The efficiency of various prediction models can be debated as many can’t predict
long term fluctuations and compare the current stock value as compared to it’s
current trading price which takes into account the sector performance

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Motivation

The future price of a stock is the main motivation behind the stock price
prediction. In various cases like business and industry, environmental science,
finance and economics motivation can be useful.

The future value of the company’s stock if determined successfully can open
the gateway for significant profits.

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 Literature Survey
Title Author Objective Conclusion

Stock Price Prediction Somaraju Dinesh , Adduri The objective is to predict the They have developed an
Maruthi Siva Rama Raju, stock prices in order to make application for predicting close
Sasumana Rahul, Oruganti Naga more informed and accurate stock price using LSTM
Sandeep investment decisions by algorithm. They used datasets
proposing a prediction system belonging to Google, Nifty50,
that integrates mathematical TCS, etc. and achieved above
functions, machine learning. 93% accuracy for these datasets.

Stock Market Prediction K. Hiba Sadia, Aditya Sharma, The objective is preprocessing of They measured the accuracy of
Using Machine Learning Adarsh Paul, Sarmistha Padhi, the raw dataset. Secondly, after the different algorithms and
Saurav Sanyal preprocessing the data, they’ve found that the most suitable
Algorithms reviewed the use of random algorithm for predicting the
forest, support vector machine market price of a stock based on
on the dataset and the outcomes various data points from the
it generates. historical data is the random
forest algorithm.

Stock Market Prediction Rutika Shinde, Poojan Modi, The objective is to build a They concluded that it is possible
Using Machine Learning Manish Patil prediction model which forecasts to predict stock market with
the stock market values. More more accuracy and efficiency
accurate and efficient predictions using machine learning
may yield significant profits, techniques which can help the
stabilize world’s financial investors, traders to invest their
condition to some extent. money for good profits and
decrease the chances of losing
their money in the stock market.

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 Literature Survey
Title Author Objective Conclusion

Forecasting the Stock Lufuno Ronald Marwala The objective of this work was to They concluded that the results
Market Index Using Artificial use artificial intelligence (AI) show the ranking of
techniques to model and predict performances support vector
Intelligence Techniques the future price of a stock market machines, neuro-fuzzy systems,
index. Three artificial intelligence multilayer perceptron neural
techniques, namely, neural networks is dependent on the
networks (NN), support vector accuracy measure used.
machines and neuro-fuzzy
systems are implemented in
forecasting the future price of a
stock market index based on its
historical price information.

The Stock Market and Manh Ha Duong, Boriss The objective was to They concluded that their vector
Investment Siliverstovs investigating the relation autoregressive models suggest
between equity prices and positive correlation between
aggregate investment in major changes equity prices and
European countries including investment is, in general,
France, Germany, Italy, the significant.
Netherlands and the United
Kingdom.

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 Literature Survey
Title Author Objective Conclusion

Stock Price Correlation Hyeong Kyu Choi Predicting the price correlation of In our empirical study, the
Coefficient Prediction with two assets for future time periods predictive ability of the ARIMA-
is important in portfolio LSTM model turned out superior
ARIMALSTM Hybrid Model optimization. We apply LSTM to all other financial models by a
recurrent neural networks (RNN) significant scale. Our work
in predicting the stock price implies that it is worth
correlation coefficient of two considering the ARIMALSTM
individual stocks. model to forecast correlation
coefficient for portfolio
optimization.

Stock Market Prediction for Ms. Chandrima Chowdhury In this project we attempt to he Decision Tree model has
Algorithmic Trading using implement a Predictive Modeling achieved approximately 66 – 70
and Technical Indicators Analysis percent accuracy for most of the
Machine Learning approach to predict stock market stocks with statistical
Techniques & Predictive prices by developing an significance.
Analytics: An Excel based automated stock data collection
automated application and predictive analysis tool.
integrated with R and D3.JS Predictive Modeling is very
effectively implemented in
forecasting stock prices, returns,
and stock modeling and the
most frequent methodologies are
the Decision Tree algorithm and
the Regression Algorithm.

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

LSTM –
Block Diagram

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Sentiment
Analysis –
Block Diagram

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

Algorithms and ML Methods To Be used

LSTM – Long Short Term Memory

Long Short-Term Memory (LSTM) networks are a type of recurrent neural network capable of
learning order dependence in sequence prediction problems.

Linear Regression
The representation of linear regression is an equation that describes a line that best fits the
relationship between the input variables (x) and the output variables (y), by finding specific
weightings for the input variables called coefficients (B).

NLP – Natural Language Parsing

Natural language processing (NLP) refers to the branch of computer science—and more
specifically, the branch of artificial intelligence or AI—concerned with giving computers the
ability to understand text and spoken words in much the same way human beings can.

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 Stock Price Prediction of long term share prices
LSTM and Sentiment Analysis

References

[1] J. Jagwani, M. Gupta, H. Sachdeva, and A. Singhal, “Stock Price Forecasting Using Data from
Yahoo Finance and Analysing Seasonal and Nonseasonal Trend,” in 2018 Second International
Conference on Intelligent Computing and Control Systems (ICICCS),

[2] Y. Lei, K. Zhou, and Y. Liu, “Multi-Category Events Driven Stock Price Trends Prediction,” in
2018 5th IEEE International Conference on Cloud Computing and Intelligence Systems (CCIS),
Nanjing, China

[3] B. Jeevan, E. Naresh, B. P. V. kumar, and P. Kambli, “Share Price Prediction using Machine
Learning Technique,” in 2018 3rd International Conference on Circuits, Control, Communication
and Computing (I4C), Bangalore, India, Oct. 2018

[4]Zexin Hu, “A Survey of Forex and Stock Price Prediction Using Deep Learning” - 2021

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 Questions?

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