Forecasting Stock Time-Series using Data Approximation and Pattern Sequence Similarity

Time series analysis is the process of building a model using statistical techniques to represent characteristics of time series data. Processing and forecasting huge time series data is a challenging task. This paper presents Approximation and Prediction of Stock Time-series data (APST), which is a two step approach to predict the direction of change of stock price indices. First, performs data approximation by using the technique called Multilevel Segment Mean (MSM). In second phase, prediction is performed for the approximated data using Euclidian distance and Nearest-Neighbour technique. The computational cost of data approximation is O(n ni) and computational cost of prediction task is O(m |NN|). Thus, the accuracy and the time required for prediction in the proposed method is comparatively efficient than the existing Label Based Forecasting (LBF) method [1].Comment: 11 page

Machine Learning for Financial Prediction Under Regime Change Using Technical Analysis: A Systematic Review

Recent crises, recessions and bubbles have stressed the non-stationary nature and the presence of drastic structural changes in the financial domain. The most recent literature suggests the use of conventional machine learning and statistical approaches in this context. Unfortunately, several of these techniques are unable or slow to adapt to changes in the price-generation process. This study aims to survey the relevant literature on Machine Learning for financial prediction under regime change employing a systematic approach. It reviews key papers with a special emphasis on technical analysis. The study discusses the growing number of contributions that are bridging the gap between two separate communities, one focused on data stream learning and the other on economic research. However, it also makes apparent that we are still in an early stage. The range of machine learning algorithms that have been tested in this domain is very wide, but the results of the study do not suggest that currently there is a specific technique that is clearly dominant

FLANN Based Model to Predict Stock Price Movements of Stock Indices

Financial Forecasting or specifically Stock Market prediction is one of the hottest fields of research lately due to its commercial applications owing to the high stakes and the kinds of attractive benefits that it has to offer. Forecasting the price movements in stock markets has been a major challenge for common investors, businesses, brokers and speculators. As more and more money is being invested the investors get anxious of the future trends of the stock prices in the market. The primary area of concern is to determine the appropriate time to buy, hold or sell. In their quest to forecast, the investors assume that the future trends in the stock market are based at least in part on present and past events and data [1]. However financial time-series is one of the most ‘noisiest’ and ‘non-stationary’ signals present and hence very difficult to forecas

The contribution of data mining to information science

The information explosion is a serious challenge for current information institutions. On the other hand, data mining, which is the search for valuable information in large volumes of data, is one of the solutions to face this challenge. In the past several years, data mining has made a significant contribution to the field of information science. This paper examines the impact of data mining by reviewing existing applications, including personalized environments, electronic commerce, and search engines. For these three types of application, how data mining can enhance their functions is discussed. The reader of this paper is expected to get an overview of the state of the art research associated with these applications. Furthermore, we identify the limitations of current work and raise several directions for future research

An academic review: applications of data mining techniques in finance industry

With the development of Internet techniques, data volumes are doubling every two years, faster than predicted by Moore’s Law. Big Data Analytics becomes particularly important for enterprise business. Modern computational technologies will provide effective tools to help understand hugely accumulated data and leverage this information to get insights into the finance industry. In order to get actionable insights into the business, data has become most valuable asset of financial organisations, as there are no physical products in finance industry to manufacture. This is where data mining techniques come to their rescue by allowing access to the right information at the right time. These techniques are used by the finance industry in various areas such as fraud detection, intelligent forecasting, credit rating, loan management, customer profiling, money laundering, marketing and prediction of price movements to name a few. This work aims to survey the research on data mining techniques applied to the finance industry from 2010 to 2015.The review finds that Stock prediction and Credit rating have received most attention of researchers, compared to Loan prediction, Money Laundering and Time Series prediction. Due to the dynamics, uncertainty and variety of data, nonlinear mapping techniques have been deeply studied than linear techniques. Also it has been proved that hybrid methods are more accurate in prediction, closely followed by Neural Network technique. This survey could provide a clue of applications of data mining techniques for finance industry, and a summary of methodologies for researchers in this area. Especially, it could provide a good vision of Data Mining Techniques in computational finance for beginners who want to work in the field of computational finance

Community Detection and Growth Potential Prediction from Patent Citation Networks

The scoring of patents is useful for technology management analysis. Therefore, a necessity of developing citation network clustering and prediction of future citations for practical patent scoring arises. In this paper, we propose a community detection method using the Node2vec. And in order to analyze growth potential we compare three ''time series analysis methods'', the Long Short-Term Memory (LSTM), ARIMA model, and Hawkes Process. The results of our experiments, we could find common technical points from those clusters by Node2vec. Furthermore, we found that the prediction accuracy of the ARIMA model was higher than that of other models.Comment: arXiv admin note: text overlap with arXiv:1607.00653 by other author