Causality-Guided Multi-Memory Interaction Network for Multivariate Stock Price Movement Prediction

Di Luo, Weiheng Liao, Shuqi Li, Xin Cheng, Rui Yan


Abstract
Over the past few years, we’ve witnessed an enormous interest in stock price movement prediction using AI techniques. In recent literature, auxiliary data has been used to improve prediction accuracy, such as textual news. When predicting a particular stock, we assume that information from other stocks should also be utilized as auxiliary data to enhance performance. In this paper, we propose the Causality-guided Multi-memory Interaction Network (CMIN), a novel end-to-end deep neural network for stock movement prediction which, for the first time, models the multi-modality between financial text data and causality-enhanced stock correlations to achieve higher prediction accuracy. CMIN transforms the basic attention mechanism into Causal Attention by calculating transfer entropy between multivariate stocks in order to avoid attention on spurious correlations. Furthermore, we introduce a fusion mechanism to model the multi-directional interactions through which CMIN learns not only the self-influence but also the interactive influence in information flows representing the interrelationship between text and stock correlations. The effectiveness of the proposed approach is demonstrated by experiments on three real-world datasets collected from the U.S. and Chinese markets, where CMIN outperforms existing models to establish a new state-of-the-art prediction accuracy.
Anthology ID:
2023.acl-long.679
Volume:
Proceedings of the 61st Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers)
Month:
July
Year:
2023
Address:
Toronto, Canada
Editors:
Anna Rogers, Jordan Boyd-Graber, Naoaki Okazaki
Venue:
ACL
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
12164–12176
Language:
URL:
https://aclanthology.org/2023.acl-long.679
DOI:
10.18653/v1/2023.acl-long.679
Bibkey:
Cite (ACL):
Di Luo, Weiheng Liao, Shuqi Li, Xin Cheng, and Rui Yan. 2023. Causality-Guided Multi-Memory Interaction Network for Multivariate Stock Price Movement Prediction. In Proceedings of the 61st Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers), pages 12164–12176, Toronto, Canada. Association for Computational Linguistics.
Cite (Informal):
Causality-Guided Multi-Memory Interaction Network for Multivariate Stock Price Movement Prediction (Luo et al., ACL 2023)
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PDF:
https://aclanthology.org/2023.acl-long.679.pdf
Video:
 https://aclanthology.org/2023.acl-long.679.mp4