Researchers from VTB and HSE University-St Petersburg have come up with an algorithm for predicting stock price fluctuations in the Russian market by analyzing financial news. By making financial projections for next week (or month), the novel STTM (Stock Tonal Topic Modeling) algorithm can help investors build more effective financial strategies. The paper has been published in PeerJ Computer Science.
Researchers from VTB and HSE University-St Petersburg have come up with an algorithm for predicting stock price fluctuations in the Russian market by analyzing financial news. By making financial projections for next week (or month), the novel STTM (Stock Tonal Topic Modeling) algorithm can help investors build more effective financial strategies. The paper has been published in PeerJ Computer Science.
Is it possible to predict stock performance? According to one of the top theories of investment, the efficient market hypothesis, stocks always trade at a fair value that reflects all publicly available information capable of affecting their price. Therefore, it should be impossible to build an effective investment strategy just by analyzing such information and any stock projections based on it.
This, however, does not stop investors from trying to predict stock market performance. A variety of approaches have been proposed which can be grouped into two main types: projections based on past trends in share prices and those using external information such as financial statements, news, and expert opinion.
