Research Article
An Intelligent Fusion Model with Portfolio Selection and Machine
Learning for Stock Market Prediction
Dushmanta Kumar Padhi ,
1
Neelamadhab Padhy ,
1
Akash Kumar Bhoi ,
2,3,4
Jana Shafi ,
5
and Seid Hassen Yesuf
6
1
School of Engineering and Technology, Department of Computer Science and Engineering, GIET University, Gunupur, India
2
KIET Group of Institutions, Delhi NCR, Ghaziabad 201206, India
3
Directorate of Research, Sikkim Manipal University, Gangtok 737102, Sikkim, India
4
AB-Tech eResearch (ABTeR), Sambalpur, Burla 768018, India
5
Department of Computer Science, College of Arts and Science, Prince Sattam Bin Abdulaziz University,
Wadi Ad-Dawasir 11991, Saudi Arabia
6
Department of Computer Science, College of Informatics, University of Gondar, Maraki 196, Gondar, Ethiopia
Correspondence should be addressed to Seid Hassen Yesuf; seid.yesuf@uog.edu.et
Received 12 April 2022; Revised 17 May 2022; Accepted 26 May 2022; Published 23 June 2022
Academic Editor: Yang Gu
Copyright © 2022 Dushmanta Kumar Padhi et al. is is an open access article distributed under the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is
properly cited.
Developing reliable equity market models allows investors to make more informed decisions. A trading model can reduce the risks
associated with investment and allow traders to choose the best-paying stocks. However, stock market analysis is complicated with
batch processing techniques since stock prices are highly correlated. In recent years, advances in machine learning have given us a
lot of chances to use forecasting theory and risk optimization together. e study postulates a unique two-stage framework. First,
the mean-variance approach is utilized to select probable stocks (portfolio construction), thereby minimizing investment risk.
Second, we present an online machine learning technique, a combination of “perceptron” and “passive-aggressive algorithm,” to
predict future stock price movements for the upcoming period. We have calculated the classification reports, AUC score, accuracy,
and Hamming loss for the proposed framework in the real-world datasets of 20 health sector indices for four different geo-
graphical reasons for the performance evaluation. Lastly, we conduct a numerical comparison of our method’s outcomes to those
generated via conventional solutions by previous studies. Our aftermath reveals that learning-based ensemble strategies with
portfolio selection are effective in comparison.
1. Introduction
Before the end of the twentieth century, low-frequency fi-
nancial data were available for analysing and forecasting the
stock market. Fewer professionals and academicians use
these low-frequency data for their empirical studies, but as
there are no sufficient related data available, the empirical
research will not succeed [1]. Due to the rapid development
of science and technology, the cost of data capture and
storage has been reduced dramatically, which makes it easy
to record each day’s trading data related to the financial
market. As a result, significant financial analysis of data has
become a prominent area of research in economics and a
variety of other disciplines [2].
With the recent rapid economic expansion, the quantity
of financial activities has expanded, and their fluctuating
trend has also become more complex. Asset prices trend
forecast is a classic and fascinating issue that has piqued the
interest of numerous academics from several fields. Aca-
demic and financial research subjects to understand stock
market patterns and anticipate their growth and changes.
Portfolio construction through competent stock selection
has long been a critical endeavour for investors and fund
managers. Portfolio enhancement and optimization have
Hindawi
Computational Intelligence and Neuroscience
Volume 2022, Article ID 7588303, 18 pages
https://doi.org/10.1155/2022/7588303