Integration of CAPM and ANN in the Application of Stock Forecasting

Wenzhen Fan, Jiayan Wang

2024

Abstract

The goal of this review is to integrate the two models of capital asset pricing model (CAPM) and artificial neural network (ANN) to predict stocks. First, the article introduces the basic theories of CAPM and ANN, their traditional roles in stock market analysis, and their respective advantages. This article emphasizes that although both CAPM and ANN have their advantages in stock prediction, their integration can bring comprehensive insights. The paper used CAPM’s in-depth analysis capabilities in risk assessment and ANN’s ability to process large-scale complex data and found that the accuracy and efficiency of stock market predictions can be significantly improved. However, this integrated approach also comes with new challenges and difficulties. It includes not only how to find the complexity of the model, but also how to meet the requirements for data quality, and how to find a way to integrate the two models to predict stocks effectively. This article further discusses future research directions, which can optimize the structure of the integrated model and improve its adaptability to market dynamics, including how to use this integrated model to promote more effective investment decisions in the rapidly developing financial technology field.

Paper Citation

in Harvard Style

Fan W. and Wang J. (2024). Integration of CAPM and ANN in the Application of Stock Forecasting. In Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE; ISBN 978-989-758-690-3, SciTePress, pages 32-39. DOI: 10.5220/0012818000004547

in Bibtex Style

@conference{icdse24,
author={Wenzhen Fan and Jiayan Wang},
title={Integration of CAPM and ANN in the Application of Stock Forecasting},
booktitle={Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE},
year={2024},
pages={32-39},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012818000004547},
isbn={978-989-758-690-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Data Science and Engineering - Volume 1: ICDSE
TI - Integration of CAPM and ANN in the Application of Stock Forecasting
SN - 978-989-758-690-3
AU - Fan W.
AU - Wang J.
PY - 2024
SP - 32
EP - 39
DO - 10.5220/0012818000004547
PB - SciTePress