A new convolutional neural network and long short term memory combined model for stock index prediction

Yuyang Lin, Qiyin Zhong, Qi Huang, Muyang Li, Fei Ma

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

2 Citations (Scopus)

Abstract

Stock market is one of the most important parts in the financial market. Numerous time series forecasting methods have been developed for predicting the stock price. Feature extraction is essential to many of these forecasting models. Highly related features can improve the accuracy of the forecasting model. This paper proposes a new model named CNN-LS that combines Convolution Neural Networks (CNN) with Long Short-Term Memory (LSTM) to predict the price of six common indices, including Shanghai Composite Index, Shenzhen Component Index, Dow Jones Index, Nasdaq Index, Nikkei 225 and SP 500. The model contains two paths of CNN and one path of LSTM to extract features. In our experiment with 10 years historic data of six indexes, the proposed CNN-LS achieved MSE of 0.5994 and MAE of 0.5427 on the testing set, both of which are better than MAE and MSE of five recent methods for stock prediction.

Original languageEnglish
Title of host publicationProceedings - 2021 14th International Congress on Image and Signal Processing, BioMedical Engineering and Informatics, CISP-BMEI 2021
EditorsQingli Li, Lipo Wang, Yan Wang, Wenwu Li
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781665400039
DOIs
Publication statusPublished - 2021
Event14th International Congress on Image and Signal Processing, BioMedical Engineering and Informatics, CISP-BMEI 2021 - Shanghai, China
Duration: 23 Oct 202125 Oct 2021

Publication series

NameProceedings - 2021 14th International Congress on Image and Signal Processing, BioMedical Engineering and Informatics, CISP-BMEI 2021

Conference

Conference14th International Congress on Image and Signal Processing, BioMedical Engineering and Informatics, CISP-BMEI 2021
Country/TerritoryChina
CityShanghai
Period23/10/2125/10/21

Keywords

  • Close Price Prediction
  • Convolutional neural network
  • Deep learning
  • Long Short-Term Memory
  • Stock index

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