AI Sentiment Analysis for Stock Price Prediction

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Solution Overview

Problem

Existing stock trading software fails to consider user sentiments and transaction histories when predicting stock prices, leading to inaccurate predictions.

Innovation Solution

A sentiment analysis platform utilizing artificial intelligence to analyze user comments, opinions, and transaction data from social media and financial institutions, calculating weighted scores to predict future stock prices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If traditional stock trading software is used without user sentiment analysis, then the system complexity is low, but prediction accuracy deteriorates

Engineering Contradiction:
Improveprediction accuracyVSAvoidsystem complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The patent combines sentiment analysis from social media sources with traditional transaction data into a unified prediction system. The sentiment analysis module processes user comments, opinions, and predictions from multiple social media platforms, then integrates this processed sentiment information with transaction data from financial institutions to generate stock price predictions, thereby improving prediction accuracy while managing system complexity through modular integration

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The patent introduces an intermediary sentiment analysis module that acts as a bridge between raw social media data and the prediction engine. This intermediary component processes and structures unstructured sentiment data into usable features, then combines them with structured transaction data, serving as a mediator that enables accurate predictions without directly complicating the core prediction algorithm

Inventive Principle:
Principle #24Intermediary (Mediator)

2Measurement precision

If comprehensive user data from multiple sources is integrated, then prediction accuracy improves, but data processing time increases

Engineering Contradiction:
Improveprediction accuracyVSAvoiddata processing time
Core Design Contradiction:
Measurement precisionVSLoss of time

Solution Approach 1:

The patent implements preliminary action by pre-processing and structuring sentiment data from multiple social media sources before the actual prediction is needed. The sentiment analysis module continuously monitors and processes user comments, opinions, and predictions, maintaining a ready-to-use sentiment database that can be quickly integrated with transaction data when predictions are required, thereby reducing real-time processing time while maintaining comprehensive data analysis

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The patent segments the data processing into distinct modular components: a sentiment analysis module that handles social media data, a transaction data module that processes financial institution data, and a prediction engine that combines them. This segmentation allows each module to process its specific data type independently and efficiently, then integrate results without creating bottlenecks, thus improving prediction accuracy through comprehensive data integration while minimizing overall processing time

Inventive Principle:
Principle #1Segmentation

3Loss of information

If multiple social media sources and financial institutions are monitored, then the quantity of useful information increases, but computing resource consumption increases

Engineering Contradiction:
Improveinformation completenessVSAvoidcomputing resource consumption
Core Design Contradiction:
Loss of informationVSUse of energy by moving object

Solution Approach 1:

The patent applies extraction by selectively pulling out and processing only the most relevant features from the vast amount of data collected from multiple social media sources and financial institutions. The sentiment analysis module extracts key sentiment indicators, opinion themes, and prediction signals from social media data, and the system extracts meaningful patterns from transaction data, discarding redundant information. This selective extraction maintains information completeness while significantly reducing the computational resources required to process and analyze the data

Inventive Principle:
Principle #2Taking out (Extraction)

Data Source

PatentUS20230334570A1Utilizing artificial intelligence to make a prediction about an entity based on user sentiment and transaction history
Publication Date: 2023.10.19 CAPITAL ONE SERVICES LLC
  • US20230334570A1 patent drawing
  • US20230334570A1 patent drawing
  • US20230334570A1 patent drawing

AI summary

A device receives comment information that is associated with users and includes comments provided by the users, about an entity, via social media sources, and receives transaction information that is associated with the users and includes financial transactions of the users with the entity. The device determines correlations between the comment information and the transaction information, where the correlations between the comment information and the transaction information provide weights to the comment information to generate weighted comment information. The device generates a prediction about a future stock price of the entity based on the weighted comment information, the transaction information, and the correlations between the comment information and the transaction information, and provides the prediction about the future stock price of the entity for display.