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    This document describes a student project using machine learning techniques to analyze stock market data and predict stock prices. The project uses a support vector machine algorithm with a radial basis function kernel to analyze historical stock price data and predict future price movements. The document provides details on the methodology, including an overview of support vector machines and radial basis functions. It also presents a literature review of other research applying machine learning to stock market prediction and describes the steps taken in this student project to collect data, preprocess it, train models, and evaluate predictions.

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    Python

    Uploaded by

    Dhinesh kumar
    27 views12 pages
    This document describes a student project using machine learning techniques to analyze stock market data and predict stock prices. The project uses a support vector machine algorithm with a radial basis function kernel to analyze historical stock price data and predict future price movements. The document provides details on the methodology, including an overview of support vector machines and radial basis functions. It also presents a literature review of other research applying machine learning to stock market prediction and describes the steps taken in this student project to collect data, preprocess it, train models, and evaluate predictions.

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    This document describes a student project using machine learning techniques to analyze stock market data and predict stock prices. The project uses a support vector machine algorithm with a radial basis function kernel to analyze historical stock price data and predict future price movements. The document provides details on the methodology, including an overview of support vector machines and radial basis functions. It also presents a literature review of other research applying machine learning to stock market prediction and describes the steps taken in this student project to collect data, preprocess it, train models, and evaluate predictions.

    Copyright:

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    Download as pptx, pdf, or txt
    27 views12 pages

    Python

    Uploaded by

    Dhinesh kumar
    This document describes a student project using machine learning techniques to analyze stock market data and predict stock prices. The project uses a support vector machine algorithm with a radial basis function kernel to analyze historical stock price data and predict future price movements. The document provides details on the methodology, including an overview of support vector machines and radial basis functions. It also presents a literature review of other research applying machine learning to stock market prediction and describes the steps taken in this student project to collect data, preprocess it, train models, and evaluate predictions.

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    © All Rights Reserved
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    of 12

    SRINIVAS

    UNIVERSITY

    Mini-Project :-
    Stock market analysis using machine
    learning

    By:-
    N B Dhinesh Kumar
    Electronic and
    communication engg..
    Abstract :-
    Stocks are possibly the most popular financial instrument
    invented for building wealth and are the centerpiece of any
    investment portfolio. The advances in trading technolo-gy has
    opened up the markets so that nowadays nearly anybody can
    own stocks. From last few decades, there seen explosive
    increase in the average person’s interest for stock market.

    In a financially explosive market, as the stock market, it is important


    to have a very accurate prediction of a future trend. Because of the
    financial crisis and re-cording profits, it is compulsory to have a
    secure prediction of the values of the stocks. Predicting a non-linear
    signal requires progressive algorithms of machine learning with
    help of Artificial Intelligence (AI).

    In this context this study uses a machine learning


    technique called Support Vector Machine (SVM) to
    predict stock prices for the large and small
    capitalizations and in the three different markets,
    employing prices with both easily and up-to-the-minute
    frequencies
    Introduction :-
    Stock market is trading platform where different investors sale and purchase shares according to stock
    availability. Stock market ups and downs effects the profit of stakeholders. If market prices going up
    with available stock then stakeholders get profit with their purchased stocks. In other case, if market
    going down with available stock prices then stakeholders have to face losses. Buyers buy stocks with low
    prices and sell stocks at high prices and try to get huge profit. Similarly, sellers sell their products at high
    prices for profit purpose Stock market (SM) work as trusty platform among sellers and buyers.
    Advances in Artificial Intelligence (AI) supporting a lot in each field of life with its intelligent features.

    Several algorithms present in AI that performing their role in future predictions . Machine learning (ML) is a
    field of artificial intelligence (AI) that can be considered as we train machines with data and analysis future with
    test data. Machines can be trained on the basis of some standard that are called algorithms. Stock market
    predictions can be great beneficial to businessman. SMP provide future trend of stock prices on the basis of
    previous history . If stakeholders get future predictions then investment can lead him toward profit. Predictions
    can be 50% correct and 50% wrong as it is risk of business. Risks facing capability in business filed can lead
    toward success. In any field of life, we take risks for success. Similarly, we rely on ML predictions about future
    prices of stock.
    In this chapter we would like to explain these ML algorithms with the help of their
    working methodologies and examples .Before working on actual problem SMP,
    complete understanding of ML algorithms role in prediction is also necessary. That’s
    why in this chapter we explained complete working scenario and problem
    definition .Several Machine learning algorithms can be used for stock market
    prediction but in this research we used few algorithms . if we further consider many
    other algorithms can also be used for Stock Market Prediction(SMP) .
    Literature Survey :-
    Chavan and Patil (2013) contribute to our understanding of ANN (Artificial Neural Networking) stock
    market prediction by surveying different model input parameters found in nine published articles. They
    attempt to find the most important input parameters that produce better model prediction accuracy.
    Based on their survey, they find that most ML techniques make use of technical variables instead of
    fundamental variables for a particular stock price prediction, while microeconomic variables are
    mostly used to predict stock market index values. In addition, hybridized parameters produce better
    results when compared with the use of only a single input variable type.

    A dynamic fuzzy model is proposed by Chiu and Chen (2009) in


    combination with a SVM to explore stock market dynamics. The fuzzy model
    integrates input variables using factors with varying degrees of influence. A
    GA adjusts the influential degree of each input variable dynamically. The
    SVM is then used to predict stock market dynamics. A multi-period
    experiment is designed to simulate stock market volatility. The 61 input
    variables in the study include stock market technical indicators, futures
    market technical indicators, and macroeconomic variables. To evaluate the
    performance of the new integrated model, they compare it with traditional
    forecast methods. The experimental results show that the model is more
    accurate when compared with alternative prediction methods.
    Zhong and Enke (2019) present a process to predict the daily return direction of a set of stocks.
    Deep neural networks (DNNs) and traditional ANNs are deployed over the entire preprocessed,
    but untransformed, dataset along with two datasets transformed via principal component analysis
    (PCA) to predict the daily direction of future stock market index returns. While controlling for
    overfitting, a pattern for the classification accuracy of the DNNs is detected and demonstrated as
    the number of the hidden layers increases gradually from 12 to 1000. Simulation results show that
    the DNNs using two PCA-represented datasets give significantly higher classification accuracy
    than those using the entire untransformed dataset or other hybrid machine learning algorithms.
    The trading strategies guided by the DNN classification process based on PCA-represented data
    perform slightly better than the others tested, including a comparison against two standard
    benchmarks.
    Methodology :-
    In this project the prediction of stock market is done by the Support Vector Machine (SVM) and
    Radial Basis Function (RBF).
    Support Vector Machine (SVM) :-
    A Support Vector Machine (SVM) is a discriminative classifier that formally defined by the separating
    hyperplane.Support Vector Machine (SVM) is considered to be as one of the most suitable algorithms
    available for the time series prediction. The supervised algorithm can be used in both, regression and
    classification. The SVM involves in plotting of data as point in the space of n dimensions.These dimensions
    are the attributes that are plotted on particular co-ordinates. SVM algorithm draws a boundary over the data
    set called as the hyper-plane, which separates the data into two classes as shown in the Fig 1.

    Considering the same figure, if µ is some unknown data point and w is


    vector which is perpendicular to the hyper-plane, then the SVM decision
    rule will be
    Radial Basis Function (RBF):-

    In the machine learning, the radial basis function kernel, or RBF kernel, is a
    popular kernel function used in the various kernelized learning algorithms. In
    particular, it is most commonly used in support vector machine classification. A
    radial basis function is the real-valued function whose value depends only on
    the distance from the origin or alternatively on the distance from some other
    point called a center.
    RBF = Local Response Function

    The RBF Kernel is nothing more than a low-band pass


    filter, which is well known in Signal Processing as a
    tool to smooth images. RBF Kernel acts as the prior
    that selects out smooth solutions.The RBF kernel is
    defined as
    KRBF (x, x’) = exp [-y ||x –x’||2]
    Where y is the parameter that sets “spread” of the
    kernel
    The Learning Environment:-
    The general setup used is as follows:
    In this paper we focus on predicting the Stock Market using Machine Learning model i.e.,
    Support Vector Machine (SVM) by RBF kernel.In this project we use four features to predict
    stock price direction – price volatility, price momentum, sector volatility, and sector momentum.

    Steps for Stock Market Prediction:-


    Step 1: This step is important for the download data from the net. We are predicting the
    financial market value of any stock. So that the share value up to the closing date are
    download from the site.
    Step 2: In the next step the data value of any stock that can be converted into the CSV
    file (Comma Separate Value) so that it will easily load into the algorithm.
    Step 3: In the next step in which GUI is open and when we click on the SVM button it
    will show the window from which we select the stock dataset value file.
    Step 4: After selecting the stock dataset file from the folder it will show graph Stock
    before mapping and stock after mapping.
    Step 5: The next step algorithm calculated the log2c and log2g value for minimizing
    error. So, it will predict the graph for the dataset value efficiently.
    Step 6: In final step algorithm display the predicted value graph of select stock which
    shows the original value and predicted value of the stock.
    RESULTS:-
    CONCLUSION :-
    In the project, we proposed the use of the data collected from
    different global financial markets with machine learning
    algorithms in order to predict the stock index movements. SVM
    algorithm works on the large dataset value which is collected
    from different global financial markets. Also, SVM does not
    give a problem of over fitting. Various machine learning based
    models are proposed for predicting the daily trend of Market
    stocks. Numerical results suggest the high efficiency. The
    practical trading models built upon our well-trained predictor.
    The model generates higher profit compared to the selected
    benchmarks.

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