Asian Journal of Social and Humanities
Vol. 1 No. 12 (2023): Asian Journal of Social and Humanities

Utilization of LSTM (Long Short Term Memory) Based Sentiment Analysis for Stock Price Prediction

Muhammad Fajrul Aslim (Universitas Esa Unggul)
Gerry Firmansyah (Universitas Esa Unggul, Indonesia)
Budi Tjahjono (Universitas Esa Unggul, Indonesia)
Habibullah Akbar (Universitas Esa Unggul, Indonesia)
Agung Mulyo Widodo (Universitas Esa Unggul, Indonesia)



Article Info

Publish Date
25 Sep 2023

Abstract

This study aims to utilize sentiment analysis in predicting stock price movements. Sentiment analysis can provide information to investors to understand market sentiment. This study uses a text-based approach by pre-processing data, constructing a sentiment analysis model and evaluating model performance. The collected data is analyzed to identify the text's positive, negative, or neutral sentiments. The approach used in scoring sentiment analysis is the Text blob approach and the Lexicon approach. Differences in the results of the accuracy of the two Sentiment Analysis approaches with the LSTM model have an influence on the prediction results with a better increase in accuracy using the Lexicon Sentiment Analysis approach. Then the LSTM model is implemented to classify texts into the desired sentiment categories. The results of this study are insight into the use of sentiment analysis in predicting stock price movements. The implemented sentiment analysis model can be a useful predictive tool for investors and stock practitioners in making investment decisions.

Copyrights © 2023






Journal Info

Abbrev

jsh

Publisher

Subject

Decision Sciences, Operations Research & Management Earth & Planetary Sciences Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice

Description

Asian Journal of Social and Humanities is a scientific journal in the form of research and can be accessed openly. This journal is published once bimonthly by Beritrust Publisher. Asian Journal of Social and Humanities provides a means for ongoing discussion of relevant issues that fall within the ...