Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange
This research investigates the utilization of machine learning methodologies for the purpose of forecasting the fluctuations in stock values inside the financial market. The application of a Random Forest classifier is utilized on a dataset including historical stock prices (namely, the KSE-100 Ind...
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| Format: | Article |
| Language: | English |
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National University of Modern Languages (NUML), Islamabad
2024-06-01
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| Series: | NUML International Journal of Business & Management |
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| Online Access: | https://nijbm.numl.edu.pk/index.php/BM/article/view/197 |
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| author | Zafar Akhter Dr. Hassan Raza |
| author_facet | Zafar Akhter Dr. Hassan Raza |
| author_sort | Zafar Akhter |
| collection | DOAJ |
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This research investigates the utilization of machine learning methodologies for the purpose of forecasting the fluctuations in stock values inside the financial market. The application of a Random Forest classifier is utilized on a dataset including historical stock prices (namely, the KSE-100 Index) to generate predictions regarding the future movement of stocks, specifically whether they would experience an increase or decrease. The model is trained via a sliding window methodology and is assessed through the utilization of precision, recall, and F1-score criteria. The study furthermore incorporates the utilization of back testing and hyper-parameter tweaking techniques in order to enhance the performance of the model. The findings indicate that the model demonstrates a precision score of 58%, representing an enhancement compared to the previous score of 48%. Nevertheless, the model's total accuracy stands at a mere 58%, underscoring the need for future enhancements. The report additionally proposes potential avenues for future research, such as exploring alternate data sources, employing sentiment analysis techniques, and developing more advanced algorithms. The findings of this study hold significant significance for investors and financial institutions, as they highlight the potential of machine learning in facilitating informed investment decisions and improving financial forecasts and analysis.
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| format | Article |
| id | doaj-art-8f6bf579ad4c46ad8764098d00a9ee89 |
| institution | OA Journals |
| issn | 2410-5392 2521-473X |
| language | English |
| publishDate | 2024-06-01 |
| publisher | National University of Modern Languages (NUML), Islamabad |
| record_format | Article |
| series | NUML International Journal of Business & Management |
| spelling | doaj-art-8f6bf579ad4c46ad8764098d00a9ee892025-08-20T01:48:08ZengNational University of Modern Languages (NUML), IslamabadNUML International Journal of Business & Management2410-53922521-473X2024-06-01191Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock ExchangeZafar Akhter0Dr. Hassan Raza1PhD Scholar, Management Sciences, SZABIST University, Islamabad, Pakistan Associate Professor, Management Sciences, SZABIST University, Islamabad This research investigates the utilization of machine learning methodologies for the purpose of forecasting the fluctuations in stock values inside the financial market. The application of a Random Forest classifier is utilized on a dataset including historical stock prices (namely, the KSE-100 Index) to generate predictions regarding the future movement of stocks, specifically whether they would experience an increase or decrease. The model is trained via a sliding window methodology and is assessed through the utilization of precision, recall, and F1-score criteria. The study furthermore incorporates the utilization of back testing and hyper-parameter tweaking techniques in order to enhance the performance of the model. The findings indicate that the model demonstrates a precision score of 58%, representing an enhancement compared to the previous score of 48%. Nevertheless, the model's total accuracy stands at a mere 58%, underscoring the need for future enhancements. The report additionally proposes potential avenues for future research, such as exploring alternate data sources, employing sentiment analysis techniques, and developing more advanced algorithms. The findings of this study hold significant significance for investors and financial institutions, as they highlight the potential of machine learning in facilitating informed investment decisions and improving financial forecasts and analysis. https://nijbm.numl.edu.pk/index.php/BM/article/view/197Machine learningStock prices PredictionRandom ForestPrecisionRecallFinancial Forecasting |
| spellingShingle | Zafar Akhter Dr. Hassan Raza Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange NUML International Journal of Business & Management Machine learning Stock prices Prediction Random Forest Precision Recall Financial Forecasting |
| title | Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange |
| title_full | Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange |
| title_fullStr | Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange |
| title_full_unstemmed | Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange |
| title_short | Stock Price Prediction Using Machine Learning: Evidence from Pakistan Stock Exchange |
| title_sort | stock price prediction using machine learning evidence from pakistan stock exchange |
| topic | Machine learning Stock prices Prediction Random Forest Precision Recall Financial Forecasting |
| url | https://nijbm.numl.edu.pk/index.php/BM/article/view/197 |
| work_keys_str_mv | AT zafarakhter stockpricepredictionusingmachinelearningevidencefrompakistanstockexchange AT drhassanraza stockpricepredictionusingmachinelearningevidencefrompakistanstockexchange |