A Discrete Stock Price Prediction Engine Based on Financial News.

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Presentation transcript:

A Discrete Stock Price Prediction Engine Based on Financial News

Prediction of Securities Fundamentalists –Rely on company-specific performance data –Time-series data is meaningless Technical analysts –Time-series data is very important

Algorithmic Quants

Textual Representation News are gathered from Yahoo Finance News are aggregated by Industry Sectors Bag of Words Noun Phrase Proper Noun Named Entity

Arizona Financial Text System

Experimental Results

Sentiment Analysis of Financial News Articles

Sentiment Analysis Objective/Subjective Positive/Negative Tools –OpinionFinder(2006)

Arizona Financial Text System

Experimental Design Closeness –MSE = (1/n) (Predicted – Actual)^2 Direction Accuracy Simulated trading

Experimental Results Objective/Subjective

Experimental Results Positive/Negative

END