Abstract
The current world of technology is dominated by information and data. The most upcoming approach for analyzing and using the data efficiently is artificial intelligence which can be achieved by machine learning concepts. Financial market involves the advancement of various information and data which revolves around financial analysis, investing strategy, bonds, mutual funds, stocks, ETFS, real estate. Here in this chapter, we have revealed the gaps between financial ecosystem and why they are not accepting the new trends of artificial intelligence, with the help of machine learning concepts and we have also designed a basic algorithm which analyzes the graphical structure of the financial market, which can help to predict the upcoming flow of the market depending upon certain actions and activities that have been occurring currently or had a huge impact in the past. Furthermore, with the help of logistic regression, we can also determine whether the prediction was correct and efficient or not. In nutshell, by the means of pattern analyses and machine learning approach, and by this algorithm, it is possible to determine the growth of the market with certain efficiency, which can help even to those who are not relative to the domain to understand it and use their assets well making their work easier.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Lee Y-S, Tong L-I (2011) Forecasting time series using a methodology based on autoregressive integrated moving average and genetic programming. Knowl-Based Syst 24:66–72
Hadavandi E, Shavandi H, Ghanbari A (2010) Integration of genetic fuzzy systems and artificial neural networks for stock price forecasting. Knowl Based Syst 23:800–808
Asadi S, Hadavandi E, Mehmanpazir F, Nakhostin MM (2012) Hybridization of evolutionary Levenberg–Marquardt neural networks and data pre-processing for stock market prediction. Knowl-Based Syst 35:245–258
Cheng C, Xu W, Wang J (2012) A comparison of ensemble methods in financial market prediction. In 2012 Fifth international joint conference on computational sciences and optimization (CSO). IEEE, pp 755–759
Pai P-F, Lin K-P, Lin C-S, Chang P-T (2010) Time series forecasting by a seasonal support vector regression model. Expert Syst Appl 37:4261–4265
Kazem A, Sharifi E, Hussain FK, Saberi M, Hussain OK (2013) Support vector regression with chaos-based firefly algorithm for stock market price forecasting. Appl Soft Comput 13:947–958
Goldberg DE, Holland JH (1988) Mach Learn. https://doi.org/10.1023/A:1022602019183
Trivedi D, Bhagchandani A, Ganatra R, Mehta M (2018) Machine learning in finance. In: 2018 IEEE Punecon, Pune, India, pp 1–4 https://doi.org/10.1109/punecon.2018.8745424
Aldin MM, Dehnavr HD, Entezari S (2012) Evaluating the employment of technical indicators in predicting stock price index variations using artificial neural networks (case study: Tehran stock exchange). Int J Bus Manage 7
Huang S-C, Wu T-K (2008) Integrating ga-based time-scale feature extractions with SVMS for stock index forecasting. Expert Syst Appl 35:2080–2088
Hadavandi E, Ghanbari A, Abbasian-Naghneh S (2010) Developing an evolutionary neural network model for stock index forecasting. In: Advanced intelligent computing theories and applications. Springer, pp 407–415
Ou P, Wang H (2009) Prediction of stock market index movement by ten data mining techniques. Mod Appl Sci 3:P28
Shen W, Guo X, Wu C, Wu D (2011) Forecasting stock indices using radial basis function neural networks optimized by artificial fish swarm algorithm. Knowl-Based Syst 24:378–385
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Bhagchandani, A., Trivedi, D. (2021). A Machine Learning Algorithm to Predict Financial Investment. In: Kotecha, K., Piuri, V., Shah, H., Patel, R. (eds) Data Science and Intelligent Applications. Lecture Notes on Data Engineering and Communications Technologies, vol 52. Springer, Singapore. https://doi.org/10.1007/978-981-15-4474-3_30
Download citation
DOI: https://doi.org/10.1007/978-981-15-4474-3_30
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-15-4473-6
Online ISBN: 978-981-15-4474-3
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)