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Impact of Healthcare on Stock Market Volatility and Its Predictive Solution Using Improved Neural Network.
Nusrat Rouf1, Majid Bashir Malik1, Sparsh Sharma2
1Department of Computer Sciences, Baba Ghulam Shah Badshah University, Rajouri 185234, India.
This study introduces a novel machine learning model for predicting stock market prices during the COVID-19 pandemic. The proposed model, utilizing technical indicators and COVID-19 data, demonstrates superior performance in stock analysis.
Area of Science:
- Financial Markets
- Data Science
- Epidemiology
Background:
- The COVID-19 pandemic caused significant global economic disruption and stock market volatility.
- Predicting stock market behavior during such crises is crucial for economic stability.
- Traditional stock prediction methods face challenges due to the nonlinear and dynamic nature of financial data.
Purpose of the Study:
- To develop and evaluate a novel machine learning model for stock index price prediction during the COVID-19 pandemic.
- To explore the impact of hyperparameter optimization on model accuracy.
- To investigate the importance of feature selection and preprocessing using technical and COVID-19 data.
Main Methods:
- A customized neural network model was developed.
- A novel dataset was created incorporating nine technical indicators and COVID-19 data.
- Feature selection techniques and extensive hyperparameter optimization were employed.
Main Results:
- The proposed model demonstrated superior performance compared to other evaluated models.
- The study highlights the effectiveness of hyperparameter optimization in enhancing prediction accuracy.
- Optimal feature selection and preprocessing were found to be critical for robust stock index prediction.
Conclusions:
- The developed machine learning model offers a significant contribution to stock analysis research during pandemics.
- This approach provides a robust framework for predicting stock market trends amidst global health crises.
- The findings underscore the value of advanced machine learning techniques in financial forecasting.

