Traditionally, stock prices were analyzed by studying past trends—numbers like how much a stock was sold for yesterday or how many shares were traded. But numbers don’t tell the whole story. The stock market is as much about feelings as it is about facts.
Think about it:
Understanding these emotions, or sentiments, could be the missing piece of the puzzle in predicting stock prices. How, we at ODA achieving this:
The team collected two types of data:
The AI model used was like a storyteller with a sharp memory. It remembered patterns in numbers (stock prices) and listened to the emotions in the news (sentiments). This combination helped it understand how stories in the media influenced the numbers on the stock chart.
Once the AI had learned these patterns, it began predicting what might happen next:
By blending the emotions in news stories with historical stock data, the AI became smarter. It was better at predicting price movements compared to models that only looked at numbers.
This hybrid approach worked especially well during volatile times—when emotions ran high, like during major announcements or crises.
Potential Impacts of this Innovation:
Who knows? The next time you read a headline about your favorite company, you might also be getting a hint about its future stock price.
What do you think about using AI to understand and predict your financial data? Is it the future of investing? Let’s discuss- Drop us an email on info@optimumdataanalytics.com