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Stock trend
prediction
using twitter
sentiment
analysis
Introduction
Approach
Technical Steps
Word Cloud
References
Table of Content
MARKET SENTIMENT AND PUBLIC PERCEPTION PLAYS A
CRUCIAL ROLE IN SHAPING STOCK PRICES.
INVESTORS INVEST IN STOCK MARKET USING MULTIPLE
WAYS: ONE IS MATHEMATICAL DATA AND SECOND ONE IS
FINANCIAL REPORT OF THE STOCKS.
BUT THIS DOES NOT PROVIDE AN INSIGHT WHY STOCK
BEHAVED THE WAY IT BEHAVED, WHAT ARE THE REAL
WORLD TRIGGERS THAT CAUSING MOVEMENTS INTO THE
STOCK
PROBLEM STATEMENT:
Introduction
Approach:
TWITTER IS VALUABLE SOURCE OF REAL-TIME INFORMATION
INVESTORS, TRADERS, AND ANALYSTS TO SHARE THEIR OPINIONS
AND THOUGHTS ON THE STOCK MARKET, MAKING IT AN IDEAL
SOURCE OF DATA FOR SENTIMENT ANALYSIS.
1.DATA COLLECTION:
GATHER HISTORICAL STOCK PRICE DATA FROM RELIABLE SOURCES
OR FINANCIAL APIS. COLLECT A SUFFICIENT AMOUNT OF DATA
SPANNING A SIGNIFICANT TIME PERIOD TO CAPTURE MEANINGFUL
PATTERNS AND TRENDS.
2.DATA PREPROCESSING:
A. CLEAN THE DATA BY HANDLING MISSING VALUES, OUTLIERS, AND
ANY INCONSISTENCIES.
B. NORMALIZE OR SCALE THE DATA TO ENSURE THAT ALL FEATURES
ARE ON A SIMILAR SCALE, WHICH HELPS WITH MODEL
CONVERGENCE AND PERFORMANCE.
C. SPLIT THE DATA INTO TRAINING AND VALIDATION SETS, ENSURING
A CHRONOLOGICAL ORDER IS MAINTAINED.
BERT AND NAIVE BAYES MODELS ARE COMMONLY USED IN SENTIMENT ANALYSIS, BUT THEY DIFFER IN THEIR
APPROACHES AND HAVE DISTINCT ADVANTAGES AND DISADVANTAGES:
CONTEXTUAL UNDERSTANDING: BERT CONSIDERS THE CONTEXT AND RELATIONSHIPS BETWEEN WORDS,
ALLOWING IT TO CAPTURE THE MEANING AND NUANCES OF THE TEXT EFFECTIVELY. THIS IS BENEFICIAL FOR
SENTIMENT ANALYSIS AS IT CAN UNDERSTAND THE SENTIMENT IN A BROADER CONTEXT.
FINE-GRAINED SENTIMENT ANALYSIS: BERT CAN PROVIDE FINE-GRAINED SENTIMENT ANALYSIS BY CONSIDERING
MULTIPLE SENTIMENT CLASSES OR INTENSITY LEVELS. IT CAN IDENTIFY SUBTLE SENTIMENT VARIATIONS AND
DISTINGUISH BETWEEN POSITIVE, NEGATIVE, AND NEUTRAL SENTIMENTS.
TRANSFER LEARNING: BERT IS PRE-TRAINED ON A LARGE CORPUS OF TEXT DATA, ENABLING IT TO LEARN
GENERAL LANGUAGE REPRESENTATIONS. THIS PRE-TRAINING FACILITATES TRANSFER LEARNING, WHERE THE
PRE-TRAINED MODEL IS FINE-TUNED ON A SMALLER SENTIMENT ANALYSIS DATASET, LEADING TO IMPROVED
PERFORMANCE.
COMPUTATIONAL RESOURCES: BERT IS A DEEP LEARNING MODEL THAT REQUIRES SUBSTANTIAL COMPUTATIONAL
RESOURCES, INCLUDING POWERFUL GPUS OR TPUS, AND CONSIDERABLE TRAINING TIME.COMPUTATIONAL
RESOURCES: BERT IS A DEEP LEARNING MODEL THAT REQUIRES SUBSTANTIAL COMPUTATIONAL RESOURCES,
INCLUDING POWERFUL GPUS OR TPUS, AND CONSIDERABLE TRAINING TIME.
TRAINING DATA SIZE: BERT PERFORMS BEST WITH A LARGE AMOUNT OF TRAINING DATA. IF THE SENTIMENT
ANALYSIS DATASET IS LIMITED, THE PERFORMANCE MAY NOT BE AS STRONG AS EXPECTED.
COMPLEXITY: BERT IS A COMPLEX MODEL WITH MANY PARAMETERS, WHICH MAY MAKE IT CHALLENGING TO
INTERPRET AND DEBUG IF ISSUES ARISE.COMPLEXITY: BERT IS A COMPLEX MODEL WITH MANY PARAMETERS,
WHICH MAY MAKE IT CHALLENGING TO INTERPRET AND DEBUG IF ISSUES ARISE.
3. ML MODELS:
BERT MODEL:
-PROS:
-CONS:
SPEED AND EFFICIENCY: NAIVE BAYES MODELS ARE COMPUTATIONALLY EFFICIENT AND CAN BE TRAINED
QUICKLY. THEY ARE SUITABLE FOR REAL-TIME OR STREAMING SENTIMENT ANALYSIS APPLICATIONS.
INTERPRETABLE RESULTS: NAIVE BAYES MODELS PROVIDE INTERPRETABLE RESULTS BY CALCULATING
PROBABILITIES FOR DIFFERENT SENTIMENT CLASSES. THEY CAN INDICATE THE LIKELIHOOD OF A TWEET
BELONGING TO A PARTICULAR SENTIMENT CLASS BASED ON THE PRESENCE OR ABSENCE OF SPECIFIC WORDS.
HANDLING OUT-OF-VOCABULARY WORDS: NAIVE BAYES MODELS HANDLE OUT-OF-VOCABULARY WORDS WELL
SINCE THEY FOCUS ON WORD OCCURRENCES RATHER THAN WORD MEANINGS. THIS IS USEFUL FOR SENTIMENT
ANALYSIS IN INFORMAL TEXT DATA LIKE TWEETS, WHICH OFTEN INCLUDE NOVEL OR RARE WORDS.
ASSUMPTION OF INDEPENDENCE: NAIVE BAYES MODELS ASSUME THAT THE FEATURES (WORDS) ARE
INDEPENDENT OF EACH OTHER, WHICH IS A SIMPLIFIED ASSUMPTION. THIS MAY LIMIT THEIR ABILITY TO CAPTURE
COMPLEX RELATIONSHIPS BETWEEN WORDS AND RESULT IN LESS ACCURATE SENTIMENT ANALYSIS.
LACK OF CONTEXTUAL UNDERSTANDING: NAIVE BAYES MODELS DO NOT CONSIDER THE CONTEXT OR
RELATIONSHIPS BETWEEN WORDS. THEY TREAT EACH WORD INDEPENDENTLY, POTENTIALLY MISSING THE
OVERALL SENTIMENT EXPRESSED IN A SENTENCE OR DOCUMENT.
LIMITED SENTIMENT GRANULARITY: NAIVE BAYES MODELS ARE MORE SUITABLE FOR BINARY SENTIMENT
CLASSIFICATION (POSITIVE OR NEGATIVE) RATHER THAN FINE-GRAINED SENTIMENT ANALYSIS WITH MULTIPLE
SENTIMENT CLASSES.
NAIVE BAYES MODEL:
- PROS:
- CONS:
THE CHOICE BETWEEN BERT AND NAIVE BAYES DEPENDS ON THE SPECIFIC REQUIREMENTS OF THE SENTIMENT
ANALYSIS TASK, AVAILABLE COMPUTATIONAL RESOURCES, AND THE TRADE-OFF BETWEEN ACCURACY AND
EFFICIENCY. BERT EXCELS IN CAPTURING CONTEXT AND FINE-GRAINED SENTIMENT, WHILE NAIVE BAYES MODELS
ARE EFFICIENT, INTERPRETABLE, AND SUITABLE FOR SIMPLER SENTIMENT CLASSIFICATION TASKS.
IN THE SENTIMENT ANALYSIS OUTPUT, WE CATEGORIZE TWEETS INTO THREE CATEGORIES: POSITIVE,
NEGATIVE, AND NEUTRAL. HOWEVER, WE INTRODUCE A THRESHOLD VALUE OF 0.7 TO DISTINGUISH
BETWEEN POSITIVE/NEGATIVE AND NEUTRAL SENTIMENTS. IF THE SENTIMENT SCORE FOR A TWEET
FALLS BELOW 0.7 IN THE POSITIVE CATEGORY, IT WILL BE CONSIDERED NEUTRAL. SIMILARLY, IF THE
SENTIMENT SCORE FOR A TWEET FALLS BELOW 0.7 IN THE NEGATIVE CATEGORY, IT WILL ALSO BE
CONSIDERED NEUTRAL. THIS APPROACH ALLOWS US TO HAVE A CLEARER SEPARATION BETWEEN
STRONG POSITIVE/NEGATIVE SENTIMENTS AND MORE NEUTRAL OR AMBIGUOUS SENTIMENTS.
BY EMPLOYING THIS THRESHOLD VALUE, WE AIM TO PROVIDE A MORE BALANCED AND
CONSERVATIVE SENTIMENT CLASSIFICATION. IT HELPS IN ENSURING THAT ONLY TWEETS WITH
SENTIMENT SCORES THAT SIGNIFICANTLY SURPASS THE NEUTRAL SENTIMENT THRESHOLD ARE
CLASSIFIED AS EITHER POSITIVE OR NEGATIVE. TWEETS THAT FALL BELOW THE THRESHOLD ARE
CONSIDERED TO HAVE A SENTIMENT THAT IS CLOSER TO NEUTRAL OR LESS STRONGLY
POSITIVE/NEGATIVE.
THIS APPROACH ALLOWS FOR A MORE CONSERVATIVE INTERPRETATION OF SENTIMENT, TAKING INTO
ACCOUNT THE UNCERTAINTY OR AMBIGUITY ASSOCIATED WITH SENTIMENT ANALYSIS. IT ENSURES
THAT TWEETS WITH SENTIMENT SCORES SLIGHTLY BELOW THE THRESHOLD ARE NOT ASSIGNED A
POSITIVE OR NEGATIVE SENTIMENT LABEL, THUS AVOIDING POTENTIALLY MISCLASSIFYING TWEETS
THAT MAY HAVE WEAKER SENTIMENT EXPRESSIONS OR MIXED OPINIONS.
BY INCORPORATING THIS THRESHOLD VALUE, WE CAN PROVIDE A MORE NUANCED AND ACCURATE
SENTIMENT ANALYSIS OUTPUT THAT DIFFERENTIATES BETWEEN STRONG POSITIVE/NEGATIVE
SENTIMENTS AND SENTIMENTS THAT ARE CLOSER TO THE NEUTRAL SPECTRUM. IT HELPS IN
CAPTURING THE VARYING DEGREES OF SENTIMENT EXPRESSED IN TWEETS AND ENABLES A MORE
REFINED UNDERSTANDING OF THE OVERALL SENTIMENT TRENDS IN THE ANALYZED DATA.
4.) SENTIMENT RESULTS:
REFINE THE MODELS BY ADJUSTING HYPERPARAMETERS, ARCHITECTURE, OR PARAMETERS TO
FURTHER OPTIMIZE THEIR PERFORMANCE.
A. CONTINUOUSLY MONITOR THE PERFORMANCE OF THE MODELS AND UPDATE THEM WITH NEW
DATA AS IT BECOMES AVAILABLE.
B. REGULARLY ASSESS THE MODEL'S PERFORMANCE AGAINST REAL-TIME STOCK PRICE DATA TO
ENSURE IT REMAINS RELIABLE AND EFFECTIVE.
5.) FINE-TUNING AND ITERATION:
6.) MONITORING AND UPDATING:
Technical steps:
IN THIS STEP TWEETS ARE SCRAPED FROM TWITTER USING THE SYMBOL NAMES OF THE
STOCKS.
1.) SCRAPPING OF TWEETS:
THERE ARE MAIN FOUR STEPS IN THE PROCESS OF SENTIMENT ANALYSIS:
IN THIS STEP TWEETS ARE PREPROCESSED
USING DIFFERENT METHODS TO OBTAIN
THE CLEAN AND PROPER DATA ON WHICH
WE CAN TRAIN MODEL TO GET THE HIGH
ACCURACY.
2.) PREPROCESSING OF TWEETS:
AFTER OBTAINING THE DATA IN CLEAN AND PROPER FORMAT, IT IS GIVEN AS OUTPUT TO THE MODEL
TO PREDICT THE SENTIMENT OF EACH TWEETS.
MODEL GIVES THE OUTPUT IN THREE CATAGORIES 'POSITIVE', 'NEGATIVE' AND ''NEUTRAL.
IT GIVES THE SENTIMENT ON THE SCALE OF '0' TO '1'.
TO OBTAIN MORE ACCURATE WE HAVE SET THE THRESHOLD VALUE OF '0.7'. SO, APART FROM BEING
ALREADY NEUTRAL, IF ANY POSITIVE OR NEGATIVE TWEET HAS SENTIMENT SCORE LESS THEN '0.7' IT
WILL BE CONSIDERED AS NEUTRAL.
AFTER THAT OVERALL SENTIMENT FOR A STOCK IS COUNTED.
3) MODEL:
4.) OUTPUT SENTIMENTS OF TWEETS:
WORD CLOUD
CREATING A WORD CLOUD BASED ON THE SENTIMENT ANALYSIS
OF STOCK TWEETS CAN BE A USEFUL VISUALIZATION TECHNIQUE
TO GAIN INSIGHTS INTO THE OVERALL SENTIMENT AND THE
MOST FREQUENTLY MENTIONED WORDS OR TOPICS IN THE
TWEETS. HERE ARE A FEW REASONS WHY CREATING A WORD
CLOUD CAN BE BENEFICIAL:
1. VISUAL REPRESENTATION: WORD CLOUDS OFFER A VISUALLY
APPEALING REPRESENTATION OF TEXTUAL DATA. BY VISUALLY
EMPHASIZING WORDS BASED ON THEIR FREQUENCY OR
IMPORTANCE, WORD CLOUDS MAKE IT EASY TO IDENTIFY THE
MOST PROMINENT TERMS AND THEIR RELATIVE SIGNIFICANCE.
THIS CAN PROVIDE A QUICK OVERVIEW OF THE SENTIMENT AND
KEY THEMES PRESENT IN THE STOCK TWEETS.
2. IDENTIFYING KEY TOPICS AND SENTIMENTS: WORD CLOUDS
HELP IDENTIFY THE MOST FREQUENTLY MENTIONED WORDS IN
STOCK TWEETS. BY ANALYZING THE SIZE AND PROMINENCE OF
THE WORDS IN THE CLOUD, IT BECOMES EASIER TO IDENTIFY
THE TOPICS THAT ARE MOST COMMONLY DISCUSSED.
ADDITIONALLY, DIFFERENTIATING THE WORDS BASED ON
SENTIMENT (POSITIVE, NEGATIVE, OR NEUTRAL) WITHIN THE
WORD CLOUD CAN PROVIDE INSIGHTS INTO THE OVERALL
SENTIMENT DISTRIBUTION IN THE TWEETS.
3. EXPLORING MARKET TRENDS: WORD CLOUDS CAN HELP TRACK AND ANALYZE MARKET TRENDS AND
SENTIMENT OVER TIME. BY CREATING WORD CLOUDS FOR DIFFERENT TIME PERIODS OR COMPARING
WORD CLOUDS ACROSS DIFFERENT PERIODS, IT BECOMES POSSIBLE TO OBSERVE CHANGES IN
SENTIMENT, EMERGING TOPICS, OR SHIFTING MARKET DYNAMICS. THIS CAN ASSIST IN MONITORING
SENTIMENT SHIFTS AND IDENTIFYING POTENTIAL MARKET TRENDS OR SENTIMENT-DRIVEN TRADING
OPPORTUNITIES.
4. COMMUNICATION AND PRESENTATION: WORD CLOUDS CAN BE EFFECTIVE IN COMMUNICATING AND
PRESENTING SENTIMENT ANALYSIS RESULTS TO STAKEHOLDERS, INVESTORS, OR DECISION-MAKERS.
THE VISUAL REPRESENTATION SIMPLIFIES COMPLEX TEXTUAL DATA INTO EASILY DIGESTIBLE AND
VISUALLY APPEALING SNAPSHOTS. IT CAN BE A USEFUL WAY TO CONVEY SENTIMENT-RELATED INSIGHTS
AND TRENDS IN A CONCISE AND ENGAGING MANNER.
5. DATA EXPLORATION AND HYPOTHESIS GENERATION: WORD CLOUDS SERVE AS A STARTING POINT
FOR FURTHER ANALYSIS AND HYPOTHESIS GENERATION. BY IDENTIFYING THE MOST PROMINENT TERMS,
IT BECOMES POSSIBLE TO DIVE DEEPER INTO THOSE TOPICS AND EXPLORE CORRELATIONS OR
RELATIONSHIPS WITH STOCK PRICE MOVEMENTS, NEWS EVENTS, OR OTHER MARKET INDICATORS. THIS
CAN HELP GENERATE NEW RESEARCH DIRECTIONS OR INFORM ADDITIONAL ANALYSIS.

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Stock_Trend_Prediction_Using_Twitter_Sentiment_Analysis.pdf

  • 3. MARKET SENTIMENT AND PUBLIC PERCEPTION PLAYS A CRUCIAL ROLE IN SHAPING STOCK PRICES. INVESTORS INVEST IN STOCK MARKET USING MULTIPLE WAYS: ONE IS MATHEMATICAL DATA AND SECOND ONE IS FINANCIAL REPORT OF THE STOCKS. BUT THIS DOES NOT PROVIDE AN INSIGHT WHY STOCK BEHAVED THE WAY IT BEHAVED, WHAT ARE THE REAL WORLD TRIGGERS THAT CAUSING MOVEMENTS INTO THE STOCK PROBLEM STATEMENT: Introduction
  • 4. Approach: TWITTER IS VALUABLE SOURCE OF REAL-TIME INFORMATION INVESTORS, TRADERS, AND ANALYSTS TO SHARE THEIR OPINIONS AND THOUGHTS ON THE STOCK MARKET, MAKING IT AN IDEAL SOURCE OF DATA FOR SENTIMENT ANALYSIS. 1.DATA COLLECTION: GATHER HISTORICAL STOCK PRICE DATA FROM RELIABLE SOURCES OR FINANCIAL APIS. COLLECT A SUFFICIENT AMOUNT OF DATA SPANNING A SIGNIFICANT TIME PERIOD TO CAPTURE MEANINGFUL PATTERNS AND TRENDS. 2.DATA PREPROCESSING: A. CLEAN THE DATA BY HANDLING MISSING VALUES, OUTLIERS, AND ANY INCONSISTENCIES. B. NORMALIZE OR SCALE THE DATA TO ENSURE THAT ALL FEATURES ARE ON A SIMILAR SCALE, WHICH HELPS WITH MODEL CONVERGENCE AND PERFORMANCE. C. SPLIT THE DATA INTO TRAINING AND VALIDATION SETS, ENSURING A CHRONOLOGICAL ORDER IS MAINTAINED.
  • 5. BERT AND NAIVE BAYES MODELS ARE COMMONLY USED IN SENTIMENT ANALYSIS, BUT THEY DIFFER IN THEIR APPROACHES AND HAVE DISTINCT ADVANTAGES AND DISADVANTAGES: CONTEXTUAL UNDERSTANDING: BERT CONSIDERS THE CONTEXT AND RELATIONSHIPS BETWEEN WORDS, ALLOWING IT TO CAPTURE THE MEANING AND NUANCES OF THE TEXT EFFECTIVELY. THIS IS BENEFICIAL FOR SENTIMENT ANALYSIS AS IT CAN UNDERSTAND THE SENTIMENT IN A BROADER CONTEXT. FINE-GRAINED SENTIMENT ANALYSIS: BERT CAN PROVIDE FINE-GRAINED SENTIMENT ANALYSIS BY CONSIDERING MULTIPLE SENTIMENT CLASSES OR INTENSITY LEVELS. IT CAN IDENTIFY SUBTLE SENTIMENT VARIATIONS AND DISTINGUISH BETWEEN POSITIVE, NEGATIVE, AND NEUTRAL SENTIMENTS. TRANSFER LEARNING: BERT IS PRE-TRAINED ON A LARGE CORPUS OF TEXT DATA, ENABLING IT TO LEARN GENERAL LANGUAGE REPRESENTATIONS. THIS PRE-TRAINING FACILITATES TRANSFER LEARNING, WHERE THE PRE-TRAINED MODEL IS FINE-TUNED ON A SMALLER SENTIMENT ANALYSIS DATASET, LEADING TO IMPROVED PERFORMANCE. COMPUTATIONAL RESOURCES: BERT IS A DEEP LEARNING MODEL THAT REQUIRES SUBSTANTIAL COMPUTATIONAL RESOURCES, INCLUDING POWERFUL GPUS OR TPUS, AND CONSIDERABLE TRAINING TIME.COMPUTATIONAL RESOURCES: BERT IS A DEEP LEARNING MODEL THAT REQUIRES SUBSTANTIAL COMPUTATIONAL RESOURCES, INCLUDING POWERFUL GPUS OR TPUS, AND CONSIDERABLE TRAINING TIME. TRAINING DATA SIZE: BERT PERFORMS BEST WITH A LARGE AMOUNT OF TRAINING DATA. IF THE SENTIMENT ANALYSIS DATASET IS LIMITED, THE PERFORMANCE MAY NOT BE AS STRONG AS EXPECTED. COMPLEXITY: BERT IS A COMPLEX MODEL WITH MANY PARAMETERS, WHICH MAY MAKE IT CHALLENGING TO INTERPRET AND DEBUG IF ISSUES ARISE.COMPLEXITY: BERT IS A COMPLEX MODEL WITH MANY PARAMETERS, WHICH MAY MAKE IT CHALLENGING TO INTERPRET AND DEBUG IF ISSUES ARISE. 3. ML MODELS: BERT MODEL: -PROS: -CONS:
  • 6. SPEED AND EFFICIENCY: NAIVE BAYES MODELS ARE COMPUTATIONALLY EFFICIENT AND CAN BE TRAINED QUICKLY. THEY ARE SUITABLE FOR REAL-TIME OR STREAMING SENTIMENT ANALYSIS APPLICATIONS. INTERPRETABLE RESULTS: NAIVE BAYES MODELS PROVIDE INTERPRETABLE RESULTS BY CALCULATING PROBABILITIES FOR DIFFERENT SENTIMENT CLASSES. THEY CAN INDICATE THE LIKELIHOOD OF A TWEET BELONGING TO A PARTICULAR SENTIMENT CLASS BASED ON THE PRESENCE OR ABSENCE OF SPECIFIC WORDS. HANDLING OUT-OF-VOCABULARY WORDS: NAIVE BAYES MODELS HANDLE OUT-OF-VOCABULARY WORDS WELL SINCE THEY FOCUS ON WORD OCCURRENCES RATHER THAN WORD MEANINGS. THIS IS USEFUL FOR SENTIMENT ANALYSIS IN INFORMAL TEXT DATA LIKE TWEETS, WHICH OFTEN INCLUDE NOVEL OR RARE WORDS. ASSUMPTION OF INDEPENDENCE: NAIVE BAYES MODELS ASSUME THAT THE FEATURES (WORDS) ARE INDEPENDENT OF EACH OTHER, WHICH IS A SIMPLIFIED ASSUMPTION. THIS MAY LIMIT THEIR ABILITY TO CAPTURE COMPLEX RELATIONSHIPS BETWEEN WORDS AND RESULT IN LESS ACCURATE SENTIMENT ANALYSIS. LACK OF CONTEXTUAL UNDERSTANDING: NAIVE BAYES MODELS DO NOT CONSIDER THE CONTEXT OR RELATIONSHIPS BETWEEN WORDS. THEY TREAT EACH WORD INDEPENDENTLY, POTENTIALLY MISSING THE OVERALL SENTIMENT EXPRESSED IN A SENTENCE OR DOCUMENT. LIMITED SENTIMENT GRANULARITY: NAIVE BAYES MODELS ARE MORE SUITABLE FOR BINARY SENTIMENT CLASSIFICATION (POSITIVE OR NEGATIVE) RATHER THAN FINE-GRAINED SENTIMENT ANALYSIS WITH MULTIPLE SENTIMENT CLASSES. NAIVE BAYES MODEL: - PROS: - CONS: THE CHOICE BETWEEN BERT AND NAIVE BAYES DEPENDS ON THE SPECIFIC REQUIREMENTS OF THE SENTIMENT ANALYSIS TASK, AVAILABLE COMPUTATIONAL RESOURCES, AND THE TRADE-OFF BETWEEN ACCURACY AND EFFICIENCY. BERT EXCELS IN CAPTURING CONTEXT AND FINE-GRAINED SENTIMENT, WHILE NAIVE BAYES MODELS ARE EFFICIENT, INTERPRETABLE, AND SUITABLE FOR SIMPLER SENTIMENT CLASSIFICATION TASKS.
  • 7. IN THE SENTIMENT ANALYSIS OUTPUT, WE CATEGORIZE TWEETS INTO THREE CATEGORIES: POSITIVE, NEGATIVE, AND NEUTRAL. HOWEVER, WE INTRODUCE A THRESHOLD VALUE OF 0.7 TO DISTINGUISH BETWEEN POSITIVE/NEGATIVE AND NEUTRAL SENTIMENTS. IF THE SENTIMENT SCORE FOR A TWEET FALLS BELOW 0.7 IN THE POSITIVE CATEGORY, IT WILL BE CONSIDERED NEUTRAL. SIMILARLY, IF THE SENTIMENT SCORE FOR A TWEET FALLS BELOW 0.7 IN THE NEGATIVE CATEGORY, IT WILL ALSO BE CONSIDERED NEUTRAL. THIS APPROACH ALLOWS US TO HAVE A CLEARER SEPARATION BETWEEN STRONG POSITIVE/NEGATIVE SENTIMENTS AND MORE NEUTRAL OR AMBIGUOUS SENTIMENTS. BY EMPLOYING THIS THRESHOLD VALUE, WE AIM TO PROVIDE A MORE BALANCED AND CONSERVATIVE SENTIMENT CLASSIFICATION. IT HELPS IN ENSURING THAT ONLY TWEETS WITH SENTIMENT SCORES THAT SIGNIFICANTLY SURPASS THE NEUTRAL SENTIMENT THRESHOLD ARE CLASSIFIED AS EITHER POSITIVE OR NEGATIVE. TWEETS THAT FALL BELOW THE THRESHOLD ARE CONSIDERED TO HAVE A SENTIMENT THAT IS CLOSER TO NEUTRAL OR LESS STRONGLY POSITIVE/NEGATIVE. THIS APPROACH ALLOWS FOR A MORE CONSERVATIVE INTERPRETATION OF SENTIMENT, TAKING INTO ACCOUNT THE UNCERTAINTY OR AMBIGUITY ASSOCIATED WITH SENTIMENT ANALYSIS. IT ENSURES THAT TWEETS WITH SENTIMENT SCORES SLIGHTLY BELOW THE THRESHOLD ARE NOT ASSIGNED A POSITIVE OR NEGATIVE SENTIMENT LABEL, THUS AVOIDING POTENTIALLY MISCLASSIFYING TWEETS THAT MAY HAVE WEAKER SENTIMENT EXPRESSIONS OR MIXED OPINIONS. BY INCORPORATING THIS THRESHOLD VALUE, WE CAN PROVIDE A MORE NUANCED AND ACCURATE SENTIMENT ANALYSIS OUTPUT THAT DIFFERENTIATES BETWEEN STRONG POSITIVE/NEGATIVE SENTIMENTS AND SENTIMENTS THAT ARE CLOSER TO THE NEUTRAL SPECTRUM. IT HELPS IN CAPTURING THE VARYING DEGREES OF SENTIMENT EXPRESSED IN TWEETS AND ENABLES A MORE REFINED UNDERSTANDING OF THE OVERALL SENTIMENT TRENDS IN THE ANALYZED DATA. 4.) SENTIMENT RESULTS:
  • 8. REFINE THE MODELS BY ADJUSTING HYPERPARAMETERS, ARCHITECTURE, OR PARAMETERS TO FURTHER OPTIMIZE THEIR PERFORMANCE. A. CONTINUOUSLY MONITOR THE PERFORMANCE OF THE MODELS AND UPDATE THEM WITH NEW DATA AS IT BECOMES AVAILABLE. B. REGULARLY ASSESS THE MODEL'S PERFORMANCE AGAINST REAL-TIME STOCK PRICE DATA TO ENSURE IT REMAINS RELIABLE AND EFFECTIVE. 5.) FINE-TUNING AND ITERATION: 6.) MONITORING AND UPDATING:
  • 9. Technical steps: IN THIS STEP TWEETS ARE SCRAPED FROM TWITTER USING THE SYMBOL NAMES OF THE STOCKS. 1.) SCRAPPING OF TWEETS: THERE ARE MAIN FOUR STEPS IN THE PROCESS OF SENTIMENT ANALYSIS:
  • 10. IN THIS STEP TWEETS ARE PREPROCESSED USING DIFFERENT METHODS TO OBTAIN THE CLEAN AND PROPER DATA ON WHICH WE CAN TRAIN MODEL TO GET THE HIGH ACCURACY. 2.) PREPROCESSING OF TWEETS: AFTER OBTAINING THE DATA IN CLEAN AND PROPER FORMAT, IT IS GIVEN AS OUTPUT TO THE MODEL TO PREDICT THE SENTIMENT OF EACH TWEETS. MODEL GIVES THE OUTPUT IN THREE CATAGORIES 'POSITIVE', 'NEGATIVE' AND ''NEUTRAL. IT GIVES THE SENTIMENT ON THE SCALE OF '0' TO '1'. TO OBTAIN MORE ACCURATE WE HAVE SET THE THRESHOLD VALUE OF '0.7'. SO, APART FROM BEING ALREADY NEUTRAL, IF ANY POSITIVE OR NEGATIVE TWEET HAS SENTIMENT SCORE LESS THEN '0.7' IT WILL BE CONSIDERED AS NEUTRAL. AFTER THAT OVERALL SENTIMENT FOR A STOCK IS COUNTED. 3) MODEL: 4.) OUTPUT SENTIMENTS OF TWEETS:
  • 11. WORD CLOUD CREATING A WORD CLOUD BASED ON THE SENTIMENT ANALYSIS OF STOCK TWEETS CAN BE A USEFUL VISUALIZATION TECHNIQUE TO GAIN INSIGHTS INTO THE OVERALL SENTIMENT AND THE MOST FREQUENTLY MENTIONED WORDS OR TOPICS IN THE TWEETS. HERE ARE A FEW REASONS WHY CREATING A WORD CLOUD CAN BE BENEFICIAL: 1. VISUAL REPRESENTATION: WORD CLOUDS OFFER A VISUALLY APPEALING REPRESENTATION OF TEXTUAL DATA. BY VISUALLY EMPHASIZING WORDS BASED ON THEIR FREQUENCY OR IMPORTANCE, WORD CLOUDS MAKE IT EASY TO IDENTIFY THE MOST PROMINENT TERMS AND THEIR RELATIVE SIGNIFICANCE. THIS CAN PROVIDE A QUICK OVERVIEW OF THE SENTIMENT AND KEY THEMES PRESENT IN THE STOCK TWEETS. 2. IDENTIFYING KEY TOPICS AND SENTIMENTS: WORD CLOUDS HELP IDENTIFY THE MOST FREQUENTLY MENTIONED WORDS IN STOCK TWEETS. BY ANALYZING THE SIZE AND PROMINENCE OF THE WORDS IN THE CLOUD, IT BECOMES EASIER TO IDENTIFY THE TOPICS THAT ARE MOST COMMONLY DISCUSSED. ADDITIONALLY, DIFFERENTIATING THE WORDS BASED ON SENTIMENT (POSITIVE, NEGATIVE, OR NEUTRAL) WITHIN THE WORD CLOUD CAN PROVIDE INSIGHTS INTO THE OVERALL SENTIMENT DISTRIBUTION IN THE TWEETS.
  • 12. 3. EXPLORING MARKET TRENDS: WORD CLOUDS CAN HELP TRACK AND ANALYZE MARKET TRENDS AND SENTIMENT OVER TIME. BY CREATING WORD CLOUDS FOR DIFFERENT TIME PERIODS OR COMPARING WORD CLOUDS ACROSS DIFFERENT PERIODS, IT BECOMES POSSIBLE TO OBSERVE CHANGES IN SENTIMENT, EMERGING TOPICS, OR SHIFTING MARKET DYNAMICS. THIS CAN ASSIST IN MONITORING SENTIMENT SHIFTS AND IDENTIFYING POTENTIAL MARKET TRENDS OR SENTIMENT-DRIVEN TRADING OPPORTUNITIES. 4. COMMUNICATION AND PRESENTATION: WORD CLOUDS CAN BE EFFECTIVE IN COMMUNICATING AND PRESENTING SENTIMENT ANALYSIS RESULTS TO STAKEHOLDERS, INVESTORS, OR DECISION-MAKERS. THE VISUAL REPRESENTATION SIMPLIFIES COMPLEX TEXTUAL DATA INTO EASILY DIGESTIBLE AND VISUALLY APPEALING SNAPSHOTS. IT CAN BE A USEFUL WAY TO CONVEY SENTIMENT-RELATED INSIGHTS AND TRENDS IN A CONCISE AND ENGAGING MANNER. 5. DATA EXPLORATION AND HYPOTHESIS GENERATION: WORD CLOUDS SERVE AS A STARTING POINT FOR FURTHER ANALYSIS AND HYPOTHESIS GENERATION. BY IDENTIFYING THE MOST PROMINENT TERMS, IT BECOMES POSSIBLE TO DIVE DEEPER INTO THOSE TOPICS AND EXPLORE CORRELATIONS OR RELATIONSHIPS WITH STOCK PRICE MOVEMENTS, NEWS EVENTS, OR OTHER MARKET INDICATORS. THIS CAN HELP GENERATE NEW RESEARCH DIRECTIONS OR INFORM ADDITIONAL ANALYSIS.