Bangladeshi Stock Price Prediction and Analysis
with Potent Machine Learning Approaches
Sajib Das, Md. Shohel Arman
(B )
, Syeda Sumbul Hossain, Md. Sanzidul Islam,
Farhan Anan Himu, and Asif Khan Shakir
Department of Software Engineering, Daffodil International University, Dhaka, Bangladesh
sshuvo27@gmail.com
Abstract. Stock price forecasting, is one of the most significant financial com-
plexities, since data are not reliable and noisy, impacting many factors. This article
offers a machine learning model for the stock price prediction using Support Vec-
tor Machine-Regression (SVR) with two different kernels which are Radial Basis
Function (RBF) and linear kernel. This study shows the Prediction and accuracy
comparison between Support Vector Regression (SVR) and Linear Regression
(LR) and also the accuracy comparison for different kernels of Support vector
Regression (SVR). The model has used sum squared error (SSE) to determine the
accuracy of each algorithm; which has shown significant improvement than the
other studies. This analysis is conducted on the price data of about five years of
Grameenphone listed on Dhaka Stock Exchange (DSE). The highest accuracy was
found with Linear Regression model in every case with the highest accuracy of
about 97.07% followed by SVR (Linear) model and SVR (radial basis function)
model with the highest accuracy rate of about 97.06% and 96.82%. In some cases
the accuracy of SVR (radial basis function) was higher than SVR (linear). But it
was the Linear Regression which had the highest accuracy of all in every case.
Keywords: Machine learning · Stock price prediction · Support vector
regression · Linear regression
1 Introduction
The stock market refers to the selection and exchange of stocks in which common shares
of public companies are bought, exchanged and issued. The shares of the company are
all shares in which the company’s ownership is split. In proportion to the number of
shares in total, a single share of the stock represents fractional ownership. The prices
of stocks shift with market forces every day. This means that share prices are changing
due to demand and supply. If more people would like to purchase a stock (demand) than
sell it (supply), the price will increase. On the other hand, if more people wanted to sell
a stock than purchase it, there would be more supply than demand, and the price would
fall [1]. In other words the more a stock has been transacted the more is valuable.
© ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering 2020
Published by Springer Nature Switzerland AG 2020. All Rights Reserved
T. Bhuiyan et al. (Eds.): ICONCS 2020, LNICST 325, pp. 230–240, 2020.
https://doi.org/10.1007/978-3-030-52856-0_18