Enhancing the Prediction of Stock Market Movement Using Neutrosophic-Logic-Based Sentiment Analysis

Abstract

Social media platforms have allowed many people to publicly express and disseminate their opinions. A topic of considerable interest among researchers is the impact of social media on predicting the stock market. Positive or negative feedback about a company or service can potentially impact its stock price. Nevertheless, the prediction of stock market movement using sentiment analysis (SA) encounters hurdles stemming from the imprecisions observed in SA techniques demonstrated in prior studies, which overlook the uncertainty inherent in the data and consequently directly undermine the credibility of stock market indicators. In this paper, we proposed a novel model to enhance the prediction of stock market movements using SA by improving the process of SA using neutrosophic logic (NL), which accurately classifies tweets by handling uncertain and indeterminate data. For the prediction model, we use the result of sentiment analysis and historical stock market data as input for a deep learning algorithm called long short-term memory (LSTM) to predict the stock movement after a specific number of days. The results of this study demonstrated a predictive accuracy that surpasses the accuracy rate of previous studies in predicting stock price fluctuations when using the same dataset.

Enhancing Stock Market Forecasts with Double Deep Q-Network in Volatile Stock Market Environments

“…Researchers in [54] present a sophisticated approach using neutrosophic logic to refine sentiment analysis processes by effectively handling uncertain and indeterminate data within social media content. Their methodology is based on feeding into a long short-term memory network, which uses the results from the sentiment analysis combined with historical stock data to predict market movements more accurately than previously compared models.…”