Using News to Predict Investor Sentiment: Based on SVM Model

Diya Wang, Yixi Zhao
2020 Procedia Computer Science  
west road, donghu new technology development zone, jiangxia district, wuhan city, hubei province Abstract In previous studies, people paid more attention to the influence of news on stock price, but neglected the role of investors in stock trading. News influences investors as they make investment decisions. In this article, we look at how news affects investor sentiment. We selected PSY (psychology line), commonly used in stock investment, as an indicator to measure investor sentiment. Based
more » ... the SVM model, we establish a model that USES news texts to predict changes in investor sentiment. Our model can achieve high accuracy, which is helpful for guiding the prediction of investor sentiment in the stock market and making correct decisions. After comparing several indicators and models, we found that the investor sentiment prediction model based on SVM has a high accuracy, which can analyze the investor sentiment of the day according to the stock related news and guide investors to make correct investment decisions. west road, donghu new technology development zone, jiangxia district, wuhan city, hubei province Abstract In previous studies, people paid more attention to the influence of news on stock price, but neglected the role of investors in stock trading. News influences investors as they make investment decisions. In this article, we look at how news affects investor sentiment. We selected PSY (psychology line), commonly used in stock investment, as an indicator to measure investor sentiment. Based on the SVM model, we establish a model that USES news texts to predict changes in investor sentiment. Our model can achieve high accuracy, which is helpful for guiding the prediction of investor sentiment in the stock market and making correct decisions. After comparing several indicators and models, we found that the investor sentiment prediction model based on SVM has a high accuracy, which can analyze the investor sentiment of the day according to the stock related news and guide investors to make correct investment decisions.
doi:10.1016/j.procs.2020.06.074 fatcat:4bs3sawqwbeztciw2hqx55lbhq