{"id":88,"date":"2024-09-20T10:19:00","date_gmt":"2024-09-20T08:19:00","guid":{"rendered":"https:\/\/blog.zhaw.ch\/aiinfinance\/?p=88"},"modified":"2024-09-23T11:47:31","modified_gmt":"2024-09-23T09:47:31","slug":"using-financial-news-sentiment-for-stock-price-direction-prediction","status":"publish","type":"post","link":"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/","title":{"rendered":"Using Financial News Sentiment for Stock Price Direction Prediction"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"574\" src=\"https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-1024x574.jpg\" alt=\"\" class=\"wp-image-246\" style=\"aspect-ratio:16\/9;object-fit:cover\" srcset=\"https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-1024x574.jpg 1024w, https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-300x168.jpg 300w, https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-768x430.jpg 768w, https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-1536x861.jpg 1536w, https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-2048x1148.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Using sentiment information in the analysis of financial markets has attracted much attention. Natural language processing methods can be used to extract market sentiment information from texts such as news articles. The objective of this paper is to extract financial market sentiment information from news articles and use the estimated sentiment scores to predict the price direction of the stock market index Standard &amp; Poor\u2019s 500. To achieve the best possible performance in sentiment classification, state-of-the-art bidirectional encoder representations from transformers (BERT) models are used. <\/p>\n\n\n\n<p>The pretrained transformer networks are fine-tuned on a labeled financial text dataset and applied to news articles from known providers of financial news content to predict their sentiment scores. The generated sentiment scores for the titles of the given news articles, for the (text) content of said news articles, and for the combined title-content consideration are posited against past time series information of the stock market index. To forecast the price direction of the stock market index, the predicted sentiment scores are used in a simple strategy and as features for a random forest classifier. The results show that sentiment scores based on news content are particularly useful for stock price direction prediction.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\">Fazlija, Bledar, and Pedro Harder. 2022. Mathematics 10, no. 13: 2156.<\/pre>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/doi.org\/10.3390\/math10132156\">https:\/\/doi.org\/10.3390\/math10132156<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Using sentiment information in the analysis of financial markets has attracted much attention. Natural language processing methods can be used to extract market sentiment information from texts such as news articles. The objective of this paper is to extract financial market sentiment information from news articles and use the estimated sentiment scores to predict the [&hellip;]<\/p>\n","protected":false},"author":669,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[6],"tags":[],"features":[],"class_list":["post-88","post","type-post","status-publish","format-standard","hentry","category-papers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Using Financial News Sentiment for Stock Price Direction Prediction - Artificial Intelligence in Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Using Financial News Sentiment for Stock Price Direction Prediction\" \/>\n<meta property=\"og:description\" content=\"Using sentiment information in the analysis of financial markets has attracted much attention. Natural language processing methods can be used to extract market sentiment information from texts such as news articles. The objective of this paper is to extract financial market sentiment information from news articles and use the estimated sentiment scores to predict the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\" \/>\n<meta property=\"og:site_name\" content=\"Artificial Intelligence in Finance\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-20T08:19:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-23T09:47:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-1024x574.jpg\" \/>\n<meta name=\"author\" content=\"rikl\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Verfasst von\" \/>\n\t<meta name=\"twitter:data1\" content=\"rikl\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\"},\"author\":{\"name\":\"rikl\",\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/#\/schema\/person\/449cc73554a9ce1ce663d5e7224de6cc\"},\"headline\":\"Using Financial News Sentiment for Stock Price Direction Prediction\",\"datePublished\":\"2024-09-20T08:19:00+00:00\",\"dateModified\":\"2024-09-23T09:47:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\"},\"wordCount\":211,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/files\/2024\/09\/Sentiment-Information-1-1024x574.jpg\",\"articleSection\":[\"Papers\"],\"inLanguage\":\"de\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\",\"url\":\"https:\/\/blog.zhaw.ch\/aiinfinance\/2024\/09\/20\/using-financial-news-sentiment-for-stock-price-direction-prediction\/\",\"name\":\"Using Financial News Sentiment for Stock Price Direction Prediction - 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