Stock Market Datasets for Enhanced Stock Market Predictions

October 30, 2023 3 min read By Cogito Tech. 477 views

Artificial intelligence (AI) plays a key role in finance as it has revolutionized the way investors and financial institutions analyze and predict stock market movements.

Stock trading is an industry that has greatly benefited from AI. AI algorithms in stock trading has enabled traders to take better decisions and enhanced their trading strategies leading to increased profits and reduced risks.

AI algorithms utilize machine learning for analyzing large quantities of financial data including historical stock prices, company financial statements, news articles, social media sentiments, and macroeconomic indicators.The identification of patterns and correlations help these algorithms to predict stock prices and market trends with greater accuracy than traditional methods.

The main advantage of using AI in stock trading is in its capability to process large quantities of data in an efficient and prompt manner. Also, as these algorithms are able to process multiple variables at the same time for detecting complex patterns not easibly visible to human traders, it gives them an edge in predicting market trends and profitable trades.

Another advantage of using AI in stock trading is in its ability to learn and improve over time. Machine learning algorithms can continually analyze and adapt to new data, refining their trading strategies based on past experiences. This feature allows AI-powered trading systems to become more accurate and effective over time, adapting to changing market dynamics, and improving their performance.

AI in Stock Market

Three Main Benefits of Stock Market Datasets

  1. Data-driven insights: Stock market datasets help in making accurate stock market predictions resulting in less reliance on gut feeling or intuition and leads to making more informed investment decisions.
  2. Risk Management: AI models enable risks to be assessed and mitigated in a much more effecient manner. It involves meticulous analysis of different risk factors and market conditions in real-time leading to enhanced returns and a risk-proof investment portfolio.
  3. Reduction in Human Bias: A major benefit of using AI for predicting the stock market is impartiality. AI models offer an objective viewpoint as they are free from cognitive biases, human emotions, and other psychological factors leading to poor investment decisions.

Six Best Stock Market Datasets

  1. Historical Stock Market Dataset – This dataset contains everyday prices and volume information regarding US stocks and ETFs on the NASDAQ, NYSE, and NYSE market. It contains qualitative financial data.
  2. Istanbul Stock Exchange – This dataset consists of seven columns containing information from the Istanbul Stock Exchange National 100 Index, Standard and Poor’s 500 return index, stock market return index of Germany, stock market return index of UK, stock market return index of Japan, stock market return index of Brazil, MSCI European Index, and MSCI emerging markets index.
  3. News and Stock Data: This dataset was prepared by a teacher within deep learning and NLP. The dataset at the outset was meant for a binary classification task setup and includes information from Reddit’s r/worldnews subreddit between the dates of June 8th, 2008 and July 1st, 2016. It also has information from the Dow Jones Industrial Average between August 8th, 2008 and July 1st, 2016.
  4. Stock Market from a High Level: This stock market dataset consists of high-level stock market data obtained from the Nasdaq, Dow Jones, and S&P 500 market indexes commencing in 1977 and ending in 2017.
  5. Stock Market Turnover Ratio: This dataset contains information from the Federal Reserve Bank of St. Louis and provides information regarding total value of shares traded within very specific time periods. The results are then cross-referenced with the average market capitalization for the time period being examined to determine the disparity and predict accordingly.
  6. Uniqlo Stock Price Prediction: This dataset focuses on a single company, Uniqlo. The company is among the largest clothing retailers in Japan for nearly five decades. It contains stock data for 2012 and 2016 showcasing interesting fluctuations for building predictive models.

Significance of Artificial Intelligence in Stock Trading

  1. Profit-making: This is the main goal of AI stock trading as it does not take into account emotional factors when buying and selling stocks.
  2. Prompt and accurate decision-making:  A machine makes prompt decisions by taking stock of important factors like price fluctuations, macroeconomic data, news relating to listed companies, and government decisions after excluding emotions.
  3. Risk-elimination: AI can eliminate risk by analyzing market fluctuations, producing new ideas, and creating unique portfolios by analysing big data. It constantly complies with risk assessment standards through voice recognition, reading notes in different formats, and gaining access to various data.
  4. Setting up an Intelligence Platform: Various organizations utilize AI for setting up an intelligence platform that can create unique models through interpretation of different datasets.
  5. Preventing risky transactions: Advanced versions of AI and deep learning can be used for interpreting factors that cannot be measured like sentiments and emotions.

Hence, with the continuously evolving financial landscape, adopting AI is not just a choice but a strategic need for people who would like to optimize their returns along with risk mitigation.

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