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Student’s name
Subject
Date
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Portfolio Of AI
Stock Price Prediction
The stock market is extremely combustible and prices are spectacularly hard to

anticipate. Nonetheless, we can examine data related to the market to discover imprints

and spot directions (Hu, et al., 2021). Data scientists accomplish this to appear with

reasonable trading techniques and methods of defeating the market. The learners of AI

who are inquisitive in finance, as well as stock trading, should notice these kinds of

projects. The issue is to anticipate the way the stock market will act in the forthcoming

months utilizing the provided datasets, as well as their data analysis skills.

In this project, we will learn the way to predict stock prices along the method, we

will download stock prices, formulate a machine-learning model, and can formulate a

back-testing engine (Paruchuri, 2021). As we do that, we are able to talk about what

puts together a reasonable project for a data science portfolio, and the way to illustrate

this project in their portfolio.

Setup of Machine Learning

To let us know when to exchange, we like to instruct a machine learning model.

The machine learning model requires predicting the closing price of tomorrow and

utilizing today's data. In case the model tells us that the price will rise, we will purchase

stock. In case the model tells us that the price will move downward, we would not do

anything (Anand, 2021). We urge you to increase our true positives and days when this

model foresees that the price will move upward, and proceeds go upward. Thus, we will

be utilizing accuracy as our fallacy metric for this model, which is true
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True positives / (false positives + true positives).

This will guarantee that we underestimate how much capital we mislay with false

positives which mean days when we purchase the stock, however, the price moves

downward. This implies that we will have to acknowledge several false negatives which

are days when we foresee that the price will move downward, however, it moves

upward (Hu, et al., 2021). This is fine since we had somewhat lessened our prospect

mislaying as compared to increasing our prospect profits. So this model will retain a

low think back on/to, but high accurateness. 

Method

We will be searching for Microsoft stock, and its symbol of the stock is MSFT

(Anand, 2021). We are mentioning early steps that we will pursue to bring in forecasts

on the MSFT stock price.

● From Yahoo Finance, download MSFT stock prices

● Examine the data

● Arrangement of the dataset to foresee prospective prices utilizing recorded prices

● Experiment with a machine-learning model

● Arrange a back-testing device

● Enhance the precision of the model

In the end, we will report a few prospective forthcoming directions we can proceed in

to enhance the method. We can install MSFT stock prices by writing down pip install

yfinance in the command line (Hu, et al., 2021). We will utilize data for a sole stock

MSFT from when it began exchanging to this day and age.

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Source: (Paruchuri, 2021).

The whole globe, we like to protect the data on disk, so we can permit it once

more in case we require it without naming the API again and again (Hu, et al., 2021).

We can accomplish this by reviewing in case we have protected the data earlier. In case

we have, we only add on the data. In any other way, we upload the data. We will utilize

a random forest classifier to develop our forecasts. This is a reasonable "default"

prototype for a bunch of applications, as it can take the yield of up nonlinear

connections in the data, as well as is relatively strong to overfitting with the accurate

parameters (Anand, 2021). This is only to arrange our model and guarantee that items

are functioning adequately. To obtain the right error metric, we require to backtest

across our whole price record. After we arrange the model, this will be our following

step.
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References
Anand, C., 2021. Comparison of stock price prediction models using pre-trained neural

networks. Journal of Ubiquitous Computing and Communication Technologies

(UCCT), 3(02), pp.122-134. https://irojournals.com/jucct/V3/I2/05.pdf

Hu, Z., Zhao, Y. and Khushi, M., 2021. A survey of forex and stock price prediction

using deep learning. Applied System Innovation, 4(1), p.9.

https://www.mdpi.com/983750

Paruchuri, V. (2021, December 16). Portfolio Project: Predicting Stock Prices Using

Pandas and Scikit-learn. Dataquest. https://www.dataquest.io/blog/portfolio-

project-predicting-stock-prices-using-pandas-and-scikit-learn/