Stock Forecasting Based on Linear Regression Model and Nonlinear Machine Learning Regression Model

Abstract

To enhance the accuracy of stock price prediction for Netflix and provide individuals with a comprehensive understanding of stock trading prices, this study constructs a predictive model by employing three distinct approaches: a linear regression model, a Long Short-term Memory (LSTM) artificial neural network, and a Gated Recursive Unit (GRU) which serves as a component of the LSTM architecture. A prediction scheme is devised, utilizing historical stock data spanning from 2002 to 2022 for Netflix. The primary objective is to forecast the stock price of Netflix for the subsequent 20-day period. To evaluate the efficacy of the three models, a rigorous assessment is conducted employing robust evaluation indices. The outcomes of this analysis will enable a determination of the fitting adequacy of each model, thereby facilitating the identification of the most suitable approach for accurate stock price prediction in the context of Netflix. This research endeavors to contribute to the field of stock market analysis by leveraging advanced predictive modeling techniques for enhanced forecasting accuracy and insightful decision-making.