2692-4048ISSN (Online)
2770-0070ISSN (Print)
Volume 18 , Issue 2 , PP: 251-261, 2025 | Cite this article as | XML | Html | PDF | Full Length Article
Dhruvin Padsala 1 , Rutvij H. Jhaveri 2 , Faisal Mohammed alotaibi 3 , Thippa Reddy Gadekallu 4 *
Doi: https://doi.org/10.54216/FPA.180218
Stock price forecasting has oftentimes interested several researchers around the world. Making predictions for the future largely depends on the data that will be used to train the model. In general, historical data are used to train models, which contain a features of different types, out of which, not all are necessarily helpful in making predictions. It is, hence, crucial to select the features that can be most useful to make precise predictions. This article proposes a feature selection approach based on the K-means clustering algorithm and elastic net regularization. We have used the K-means algorithm to cluster all the correlated features together and apply elastic net regularization to select the most predictive features within each cluster. We use the selected features to train an LSTM model which predicts the future closing price of a stock for the upcoming trading day. We evaluate the performance of our proposed approach in comparison to the existing approach and observe performance improvement.
Stock price prediction , Feature selection scheme , Long short-term memory , Deep learning
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