Using Machine Learning to Improve Forecasting Efficiency for the Stock Market

Lan Dong Thi Ngoc (), Duy-Linh Bui, Sang Ha, Huong Tran Thi, Viet Pham Minh and Ha-Nam Nguyen
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Lan Dong Thi Ngoc: Academy of Finance
Duy-Linh Bui: FPT Polytechnic International—FPT Education
Sang Ha: Academy of Finance
Huong Tran Thi: Academy of Finance
Viet Pham Minh: Academy of Finance
Ha-Nam Nguyen: Electric Power University

A chapter in Proceedings of the 4th International Conference on Research in Management and Technovation, 2024, pp 439-447 from Springer

Abstract: Abstract This article explores the application of machine learning techniques to improve forecasting efficiency for the stock market. Machine learning models have the potential to capture complex patterns and dependencies in stock market trends, enabling more accurate predictions and informed investment decisions. The article discusses the various machine learning algorithms suitable for stock market forecasting, including regression models, classification models, ensemble methods, and reinforcement learning techniques. Evaluation metrics, backtesting, and validation techniques are emphasized as crucial elements in assessing the performance of machine learning models. Additionally, a case study is presented, illustrating the implementation of machine learning in the stock market and highlighting the results and implications of the study. The article concludes by discussing future directions for further enhancing forecasting efficiency, including incorporating alternative data sources, enhancing model interpretability, and utilizing real-time forecasting capabilities. Overall, the application of machine learning in the stock market has the potential to revolutionize forecasting and contribute to a more informed and prosperous investment landscape.

Keywords: Machine learning; Stock market; Forecast (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-8472-5_41

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DOI: 10.1007/978-981-99-8472-5_41

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