Prediction of Hang Seng Index Based on Machine Learning
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The stock market is a complex nonlinear dynamic system. Hong Kong is an open market and Hang Seng Index (HSI) reflects the Hong Kong stock market and the global economy. HSI daily frequency data from January 3, 2005 to July 5, 2019 was used in this paper. Then Decision Tree model and Random Forest model were chosen to predict the movements of HSI based on the highest price, the lowest price, the opening price, the closing price and the volumes. The results showed that Random Forest is more accurate. To some extent, this paper provides insight into investing Hong Kong stock market.
Stock Forecasting; Hang Seng Index; Decision Tree; Random Forest