ORCID Identifier(s)

0009-0007-0042-7839

Graduation Semester and Year

Spring 2024

Language

English

Document Type

Thesis

Degree Name

Master of Science in Computer Science

Department

Computer Science and Engineering

First Advisor

Dr. Bhanu Jain

Second Advisor

Dr. Manfred Huber

Third Advisor

Dr. Athitsos, Vassilis

Abstract

Capturing the volatility of stock prices helps individual traders, stock analysts, and institutions alike increase their returns in the stock market. Financial news headlines have been shown to have a significant effect on stock price mobility. Lately, many financial portals have restricted web scraping of stock prices and other related financial data of companies from their websites. In this study we demonstrate that emotion analysis of financial news headlines alone can be sufficient in predicting stock price movement, even in the absence of any financial data. We propose an approach that eliminates the need for web scraping of financial data. We use API based mechanism to retrieve financial news headlines. In this study we train and subsequently leverage light and computationally fast Distilled LLM Model to gather emotional tone and strength of financial news headlines for companies. We then use this information with several machine learning-based classification algorithms to predict the stock price direction based solely on the emotion analysis of news. We demon- strate that emotion analysis-based attributes of financial news headlines are as accurate in predicting the price direction as running the algorithms with the financial data alone.

Keywords

LLM, NLP, Machine Learning, BERT

Disciplines

Other Computer Engineering

License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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