Comparison of Machine Learning Models for Stock Price Forecasting

The article presents a comparative analysis of machine learning models for stock price forecasting. The process of algorithmic trading is characterized. The use of artificial intelligence in the stock market, the advantages and disadvantages of its application are considered. The models of the machine learning model are selected: linear regression and random forest, and their characteristics are given. Metrics for assessing the quality of forecasts are defined and their mathematical description is presented. Training and testing of models were performed, predicted values were obtained, and the necessary metrics were found. All calculations, analysis, and machine learning are performed in the Python programming environment using the Pandas, Numpy, Matplotlib, and Sklearn libraries. As a result, the random forest model turned out to be the most reliable, taking into account high accuracy and error minimization, for the linear regression model, the standard error and the average absolute error are almost 90% greater

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Publication Details

Journal
Scientific Research and Development Economics of the Firm
Published
2024-09-26
DOI
https://doi.org/10.12737/2306-627x-2024-13-3-46-51
Primary Topic
Stock Market Forecasting Methods
Type
article
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article

Comparison of Machine Learning Models for Stock Price Forecasting

Dina Borcova, T. Aleshechkina
Scientific Research and Development Economics of the Firm
Stock Market Forecasting Methods
article

Comparison of Machine Learning Models for Stock Price Forecasting

Dina Borcova, T. Aleshechkina
article en

Abstract

The article presents a comparative analysis of machine learning models for stock price forecasting. The process of algorithmic trading is characterized. The use of artificial intelligence in the stock market, the advantages and disadvantages of its application are considered. The models of the machine learning model are selected: linear regression and random forest, and their characteristics are given. Metrics for assessing the quality of forecasts are defined and their mathematical description is presented. Training and testing of models were performed, predicted values were obtained, and the necessary metrics were found. All calculations, analysis, and machine learning are performed in the Python programming environment using the Pandas, Numpy, Matplotlib, and Sklearn libraries. As a result, the random forest model turned out to be the most reliable, taking into account high accuracy and error minimization, for the linear regression model, the standard error and the average absolute error are almost 90% greater

Scientific Research and Development Economics of the FirmVol. 13(3)
Moscow Power Engineering Institute (RU)
Openalex Percentile: Top 80%
Stock Market Forecasting Methods
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