Prediction of Stock Performance Using Analytical Techniques

Abstract

Abstract-With an easy access to share information and data nowadays, many investors worldwide are interested in predicting stock prices. The prediction of stock prices using data mining techniques applied to technical variables has been widely researched but not much research to date has been done in applying data mining techniques to both technical and fundamental information. This paper is based on a personal approach to stock selection, using both technical and fundamental information. In this paper we construct a framework that enables us to make class predictions about industrial stock performances. In order to have a systemized approach for the selection of stocks and a high likelihood of the performance of the stock price increasing, several analytical techniques are applied. A trading strategy is also designed and the performance of the stocks evaluated. Our two goals are to validate our stock selection methodology and to determine whether our trading strategy allows us to outperform the Australian market. Simulation results show that our selected stock portfolios outperform the Australian All-Ordinaries Index. Our findings justify the use of analytics for classification and prediction purposes. Further, in conclusion, we can safely say that our stock selection and trading strategy outperformed the Australian Ordinary index.

Application and performance of data mining techniques in stock market: A review

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“…With the anticipated calculation, it will in general figure out how to get that it's achievable for the stock estimation of certain organizations to be predicted with a middle exactness as high as seventy six.12%. The system proposes for developing the mechanical stock exhibitions [2]. The expectation of stock value utilizing information mining strategies connected to specialized factors has been generally looked into however very little research to information has been done in applying information mining methods to both specialized and central data.…”