ST-Trader: A Spatial-Temporal Deep Neural Network for Modeling Stock Market Movement
Document Type
Article
Publication Date
5-1-2021
Abstract
Stocks that are fundamentally connected with each other tend to move together. Considering such common trends is believed to benefit stock movement forecasting tasks. However, such signals are not trivial to model because the connections among stocks are not physically presented and need to be estimated from volatile data. Motivated by this observation, we propose a framework that incorporates the inter-connection of firms to forecast stock prices. To effectively utilize a large set of fundamental features, we further design a novel pipeline. First, we use variational autoencoder (VAE) to reduce the dimension of stock fundamental information and then cluster stocks into a graph structure (fundamentally clustering). Second, a hybrid model of graph convolutional network and long-short term memory network (GCN-LSTM) with an adjacency graph matrix (learnt from VAE) is proposed for graph-structured stock market forecasting. Experiments on minute-level U.S. stock market data demonstrate that our model effectively captures both spatial and temporal signals and achieves superior improvement over baseline methods. The proposed model is promising for other applications in which there is a possible but hidden spatial dependency to improve time-series prediction.
Identifier
85104096084 (Scopus)
Publication Title
IEEE Caa Journal of Automatica Sinica
External Full Text Location
https://doi.org/10.1109/JAS.2021.1003976
e-ISSN
23299274
ISSN
23299266
First Page
1015
Last Page
1024
Issue
5
Volume
8
Recommended Citation
Hou, Xiurui; Wang, Kai; Zhong, Cheng; and Wei, Zhi, "ST-Trader: A Spatial-Temporal Deep Neural Network for Modeling Stock Market Movement" (2021). Faculty Publications. 4144.
https://digitalcommons.njit.edu/fac_pubs/4144