Analysis and Prediction of Stock Market Movements using Machine learning

As vast amounts of data are generated every day in many organizations, health, education, transport, business, marketing, communication, etc. All the data cannot be used for every analysis and processing as it contains some redundant data, outliers, some corrupted data, missing values and so on. To gain the knowledge-based and predictive data from this data, Data Science plays a crucial role. Data Science is a process of analysis and differentiating historical data to evaluate patterns or predict the occurrence of a future event using its robust algorithms. Many Organizations nowadays realized the importance of Data Science and started implementing it in their strategic analysis and planning processes. This research study analyses the historical data of some stock market companies between certain time periods and perform analysis by using a data science algorithm and check the accuracy of predictions. Finally, the prediction results are compared with the accuracy of other algorithms and the best possible algorithm will be selected.

I. Introduction

Data Science is an analytical field of study that uses data mining tools, machine learning algorithms and big data to extract knowledge from structured, semi-structured data and unstructured data. It combines the concepts of statistics, data analysis and their related methods to understand the actual circumstance of data. Based on the analysis done on data, frequent patterns can be found and predictions can be made based on these results. So many applications are being developed based on the concept of Data Science, redefming various domains such as following: Healthcare, Targeted Advertising, Website Recommendations, Fraud and Risk Detection, Airline Route Planning, Advanced Image Recognition, Internet Search, Website Recommendations, Gaming, Speech Recognition, Market analysis and so on. Data Science involves processing and analyzing large blocks of information to gain meaningful patterns and trends. Its process comprises mainly of five steps, which is data collection and loading it into data warehouses. Storing of data. Then managing, organizing and sorting of data is carried out based on user's results, and finally, the user represents the data in an easy-to-interpret format, such as a graph or a table. From these visualizations, one can detect trends predict future events and work on a plan of action. Stock Market defines the collection of markets and exchanges where regular activities of buying, selling of shares of publicly-held companies take place. As one may think what is the use of prediction for buying or selling some stocks? But Stock market exchanges come with a price that is a risk. Risk includes the possibility of losing some or all of it in an investment. This can be prevented in exchanges through the concept of Market movement prediction and a well-planned decision.