RAJARAJESHWARI COLLEGE OF ENGINEERING

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

INTERNSHIP REVIEW ON
“Stock Price Prediction”

By : Under the Guidance of :

DEEPIKA K (1RR20CS027)
GUIDE NAME: Dr.D.Shivakumar
GUIDE DESIGNATION : prof Dept.ofCSE
RRCE,Bangalore.
 CONTENTS

1. About the company

2. Internship Certificate
3. About the Domain
4. Introduction to project
5. Objectives
6. Methodology
7. Technical Background
8. UML Diagrams
9. Implementation Results
10. Applications
 Company Overview

 DevMinds is a pioneering educational service company committed to

delivering accessible and affordable learning solutions to people of all ages.
Our experienced educators, mentors, and trainers employ innovative teaching
techniques to ensure engaging and effective education.

Vision
To become a leading education provider in software engineering and
computer science, renowned for innovative teaching methods and the creation of
highly skilled graduates in demand by the industry.

Mission
Empowering individuals for success in software engineering and computer
science through accessible, affordable and high quality education and training.
Internship Certificate
 About the Domain

 Machine learning (ML) is the study of computer algorithms that

can improve automatically through experience and by the use of
data.
 Machine learning is a branch of artificial intelligence (AI) and
computer science which focuses on the use of data and algorithms
to imitate the way that humans learn, gradually improving its
accuracy.
 In this project we use hybrid machine learning(hyper tunning)
 INTRODUCTION TO PROJECT

1.Statistical Models: These models leverage statistical techniques to analyze historical data and
identify patterns or correlations that may help predict future stock prices. Examples include regression
analysis, autoregressive integrated moving average (ARIMA), and GARCH models.
2.Machine Learning and AI: With the advent of machine learning and artificial intelligence, more
sophisticated algorithms have emerged. These include neural networks, decision trees, support vector
machines, and deep learning models like recurrent neural networks (RNNs) and long short-term
memory networks (LSTMs).
3.Sentiment Analysis: Social media, news sentiment, and other textual data can provide insights into
market sentiment. Natural language processing (NLP) techniques are often employed to gauge public
sentiment and its potential impact on stock prices.
4.Market Indicators: Analysts often use various market indicators, such as moving averages,
volume, and relative strength indicators, to assess trends and potential price movements.
 OBJECTIVES

1.Informed Investment Decisions: The main objective is to provide investors and traders with valuable insights to make informed
investment decisions. Predictions help individuals and institutions decide when to buy or sell stocks, aiming to maximize profits or
minimize losses.

2.Risk Management: Accurate stock price predictions assist in risk management. Investors can use these predictions to assess
potential losses and make risk-reward trade-offs. By understanding future price movements, they can implement strategies to
mitigate risks.

3.Portfolio Diversification: Investors often aim to diversify their portfolios to spread risk. Stock price predictions enable investors
to identify stocks with varying future potential, contributing to a diversified investment strategy.

4.Timing Market Entry and Exit: Predictions help investors time their market entry and exit. They can aim to buy stocks at a low
price and sell when prices are expected to rise. This timing can significantly impact investment returns.

5.Long-Term Investment Strategies: Some investors use stock price predictions for long-term investment planning, seeking
stocks with solid growth potential. Accurate predictions can aid in identifying companies likely to perform well over an extended
period.

6.Short-Term Trading Strategies: Traders often rely on stock price predictions for short-term trading, aiming to profit from price
fluctuations within a day or even minutes. These predictions inform trading strategies such as day trading or swing trading.
 METHEDOLOGY
1.Time Series Analysis:
1. Autoregressive Integrated Moving Average (ARIMA): ARIMA models are suitable for analyzing and forecasting time
series data. They consider past values and trends to make future price predictions.
2. GARCH Models: Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models are used to model
volatility in financial time series data, which is essential for predicting risk and price movements.
2.Machine Learning and Deep Learning:
1. Linear Regression: Simple linear regression can be used to model the relationship between a stock's price and certain
independent variables, like economic indicators or company-specific data.
2. Support Vector Machines (SVM): SVMs can be used for classification and regression tasks in stock price prediction,
with the aim of identifying trends and patterns in the data.
3. Decision Trees and Random Forests: These tree-based models are capable of capturing complex patterns in stock data
and can be used for regression or classification tasks.
4. Neural Networks: Deep learning techniques, such as feedforward neural networks, recurrent neural networks (RNNs),
and long short-term memory networks (LSTMs), can capture intricate patterns in historical stock price data. LSTMs, in
particular, are well-suited for sequence prediction tasks.
5. Ensemble Methods: Combining multiple models (e.g., bagging or boosting) can improve prediction accuracy by
aggregating the results of individual models.
 TECHNICAL BACKGROUND
System Architecture
The system requirement for execution of this project is:
Operating System : Windows 10
Primary Memory : 8GB of LP DDR4 RAM
Processor : Intel Core i3 10th gen.
This system configuration provided adequate resources for the project, including data
processing, modeling, and analysis.
Standard software tools and libraries for data science and machine learning were used,
that include
* Python
* Jupyter Notebook
* scikit-learn.
Implementation Results
 APPLICATIONS

1.Market Research: Stock price predictions are used in market research to study and analyze historical
market trends and patterns, as well as to understand the behavior of financial markets.
2.Economic Analysis: Stock market predictions can offer insights into broader economic conditions. Analysts
often use stock market trends and predictions to inform their economic forecasts.
3.Corporate Decision-Making: Companies use stock price predictions to make strategic decisions, especially
when it comes to mergers and acquisitions, stock buybacks, and employee stock compensation programs.
4.Financial Planning: Individual investors often use stock price predictions to plan for long-term financial
goals, such as retirement, education, and major purchases.
5.Risk Assessment and Credit Scoring: Financial institutions use stock price predictions as part of risk
assessment models when granting loans or lines of credit to businesses and individuals.
6.Regulatory Compliance: Regulatory bodies and financial institutions may use stock price predictions to
monitor and ensure compliance with trading regulations.
 CONCLUSION

 Working on real-world projects in stoke price prediction has shown me the

practical applications of data science, reinforcing its significance in decision-
making.
 We can observe that the accuracy achieved by the state-of-the-art ML model is
no better than simply guessing with a probability of 50%. Possible reasons for
this may be the lack of data or using a very simple model to perform such a
complex task as Stock Market prediction.
 It’s is a complex and uncertain. While analysis and prediction tools can provide valuable
insights, investing in stocks always carries risks. It's crucial to have a well thought-out
investment strategy, diversify your portfolio, and be prepared for the possibility of
unexpected market movements. Additionally, consult with financial experts or advisors
for personalized guidance based on your financial goals and risk tolerance.