Abstract
Stock market prediction is one of the complex analysis of all time. Different expert analysts, as well as computer scientists, are working for the development of a stable and robust platform for the prediction of future stock value. The primary challenge is the nature of the movement of the daily price, which depends on various factors. To build a predictive model for the analysis of stock data and prediction is an active area of research. However, we found only a few numbers of studies performed on Korean stock market analysis, including both KOSDAQ and KOSPI companies. This study proposed a three-stage approach based on Natural Language Processing and Deep Learning techniques to analyze, comprehends the past and present market scenario, and also predict the future value of a stock. This study involves the application of natural processing techniques and deep learning techniques on around 2500 Korean companies covering KOSDAQ and KOSPI. Firstly, this paper successfully presents the current condition of the stock and overall Korean stock exchange; secondly, it recommends the potential months and weeks for investment, and finally, it predicts the future value of a stock with high accuracy. This paper may pose as a structural framework for developing a complete stock market prediction application.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Chen, K., Zhou, Y., Dai, F.: A LSTM-based method for stock returns prediction: a case study of china stock market. In: 2015 IEEE International Conference on Big Data (Big Data), pp. 2823–2824. IEEE (2015)
Hoseinzade, E., Haratizadeh, S.: CNNpred: CNN-based stock market prediction using a diverse set of variables. Expert Syst. Appl. 129, 273–285 (2019)
Kimoto, T., Asakawa, K., Yoda, M., Takeoka, M.: Stock market prediction system with modular neural networks. In: 1990 IJCNN International Joint Conference on Neural Networks, pp. 1–6. IEEE (1990)
Kumar, S., Acharya, S.: Application of machine learning algorithms in stock market prediction: a comparative analysis. In: Handbook of Research on Smart Technology Models for Business and Industry, pp. 153–180. IGI Global (2020)
Mizuno, H., Kosaka, M., Yajima, H., Komoda, N.: Application of neural network to technical analysis of stock market prediction. Stud. Inf. Control 7(3), 111–120 (1998)
Na, S.H., Sohn, S.Y.: Forecasting changes in Korea composite stock price index (Kospi) using association rules. Expert Syst. Appl. 38(7), 9046–9049 (2011)
Xu, Y., Chhim, L., Zheng, B., Nojima, Y.: Stacked deep learning structure with bidirectional long-short term memory for stock market prediction. In: Zhang, H., Zhang, Z., Wu, Z., Hao, T. (eds.) NCAA 2020. CCIS, vol. 1265, pp. 447–460. Springer, Singapore (2020). https://doi.org/10.1007/978-981-15-7670-6_37
Qu, Y., Zhao, X.: Application of LSTM neural network in forecasting foreign exchange price. In: Journal of Physics: Conference Series, vol. 1237, p. 042036. IOP Publishing (2019)
Roy, S.S., Mittal, D., Basu, A., Abraham, A.: Stock market forecasting using LASSO linear regression model. In: Abraham, A., Krömer, P., Snasel, V. (eds.) Afro-European Conference for Industrial Advancement. AISC, vol. 334, pp. 371–381. Springer, Cham (2015). https://doi.org/10.1007/978-3-319-13572-4_31
Schumaker, R.P., Chen, H.: Textual analysis of stock market prediction using breaking financial news: the Azfin text system. ACM Trans. Inf. Syst. (TOIS) 27(2), 1–19 (2009)
Selvin, S., Vinayakumar, R., Gopalakrishnan, E., Menon, V.K., Soman, K.: Stock price prediction using LSTM, RNN and CNN-sliding window model. In: 2017 International Conference on Advances in Computing, Communications and Informatics (ICACCI), pp. 1643–1647. IEEE (2017)
Song, H.J., Lee, S.J.: A study on the optimal trading frequency pattern and forecasting timing in real time stock trading using deep learning: focused on KOSDAQ. J. Inf. Syst. 27(3), 123–140 (2018)
Tabar, S., Sharma, S., Volkman, D.: A new method for predicting stock market crashes using classification and artificial neural networks. Int. J. Bus. Data Anal. 1(3), 203–217 (2020)
Usher, J., Dondio, P.: BREXIT election: forecasting a conservative party victory through the pound using ARIMA and Facebook’s prophet. In: Proceedings of the 10th International Conference on Web Intelligence, Mining and Semantics, pp. 123–128 (2020)
Zhang, Y., Wu, L.: Stock market prediction of S&P 500 via combination of improved BCO approach and BP neural network. Expert Syst. Appl. 36(5), 8849–8854 (2009)
Acknowledgment
This research was supported by the MISP (Ministry of Science, ICT & Future Planning), Korea, under the National Program for Excellence in SW) supervised by the IITP (Institute for Information & communications Technology Promotion) having number 1711102971.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 Springer Nature Switzerland AG
About this paper
Cite this paper
Chatterjee, I., Gwan, J., Kim, Y.J., Lee, M.S., Cho, M. (2021). An NLP and LSTM Based Stock Prediction and Recommender System for KOSDAQ and KOSPI. In: Singh, M., Kang, DK., Lee, JH., Tiwary, U.S., Singh, D., Chung, WY. (eds) Intelligent Human Computer Interaction. IHCI 2020. Lecture Notes in Computer Science(), vol 12615. Springer, Cham. https://doi.org/10.1007/978-3-030-68449-5_40
Download citation
DOI: https://doi.org/10.1007/978-3-030-68449-5_40
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-68448-8
Online ISBN: 978-3-030-68449-5
eBook Packages: Computer ScienceComputer Science (R0)