Intelligent risk management system for enhancing performance of stock market applications

Abstract

This paper proposes an intelligent risk management system in stock markets based on indications of social media platforms. Based on a brief survey, we found that the literature focuses on identifying, assessing and optimizing risks in stock markets using classical data sources as well as utilizing mathematical, statistical and machine learning techniques. So, we suggest a trendy data source that is social media and employing natural language processing as an advanced technique to identify and estimate risks in stock markets. This NLP model can help the investors of stock markets to be aware of the potential risks, its types and magnitudes which can help them to take the best decisions. In addition, we describe this model and some important expressions for risk analysis, risk recognition and risk estimation are driven. Besides, a practical experiment is provided to identify and evaluate the potential risks in NASDAQ stock market. Moreover, several performance measures are used to validate the efficiency of the proposed model such as the mean accuracy for the processes of risk analysis, risk identification and risk assessment is 73.33 %.