Stock Price Prediction Based on OLS and LSTM: Evidence from JPMorgan Chase, Tesla and Apple

Abstract

Contemporarily, the stock price prediction remains a challenging topic that puzzles many economists and researchers. With the development of science and technology, many types of methods have been utilized to predict the stock price. The paper first reviews the popular stock price prediction methods in recent years and then uses the OLS and LSTM models and the stock market data including 12 Technical indicators from 2018 to 2022 to predict the stock prices of the three major companies: JPMorgan Chase, Tesla and Apple. According to the analysis, the regression and the test results show that LSTM has better prediction ability. On this basis, this study gives suggestions for three companies to predict the stock price in the future. Finally, the shortcomings of the methods used in the article are proposed, and the future prospects are also discussed. These results offer a deeper and clearer understanding of the role and effect of OLS and LSTM models in stock price forecasting.