A hybrid model integrating deep learning with investor sentiment analysis for stock price prediction

Whether stock prices are predictable has been the center of debate in academia. In this paper, we propose a hybrid model that combines a deep learning approach with a sentiment analysis model for stock price prediction. We employ a Convolutional Neural Network model for classifying the investors’ hidden sentiments, which are extracted from a major stock forum. We then propose a hybrid research model by applying the Long Short-Term Memory (LSTM) Neural Network approach for analyzing the technical indicators from the stock market and the sentiment analysis results from the first step. Furthermore, this work has conducted real-life experiments from six key industries of three time intervals on the Shanghai Stock Exchange (SSE) to validate the effectiveness and applicability of the proposed model. The experiment results indicate that the proposed model has achieved better performance in classifying investor sentiments than the baseline classifiers, and this hybrid approach performs better in predicting stock prices compared to the single model and the models without sentiment analysis.