OSW

SIGNATURE WORK
CONFERENCE & EXHIBITION 2022

Text-Analysis-Based Stock-Rating System

Name

Peihan Li

Major

Data Science

Class

2022

About

Signature Work Project Overview

Nowadays, low-carbon sustainability has become a major goal of a company’s development. Practicing the idea of ESG can help companies build their core competencies and establishing key advantages for their long-term sustainable development at the same time. Meanwhile, technological innovation can also play an important role in the development of a company since the environmental -friendly development can benefit a lot from the technology like the artificial intelligence and sustainable energy. Therefore, paying attention to the environmental friendliness and innovation capability of a company when developing can effectively help us to assess its development prospect. So that the investors will have a stronger reference when looking for stocks with a better return during the investment process.

With this intention, I decided to conduct the text analysis for my project and exclusively targeting on two key words: 低碳and 创新. As an effective method to analyze company reports, natural language processing is the main method of this project. And the source data of my project is a collection of Chinese news of all stocks in a-shares. Specifically, there are totally three methods that are implemented in this project. The first one is word frequency analysis. A commonly used model will be conducted to calculate the frequency of a word being used in a text and return the result as a word cloud. Secondly, I will use word vector to quantify the content of the target texts in order to calculate the correlation between the most frequently used words with the keywords, which are “”低碳”” and “”创新””. Thirdly, sentiment analysis will also be conducted on the most frequently used words. A quantitative score will also be returned.

Signature Work Presentation Video