Search

With the emergence of artificial intelligence, deep learning techniques have been widely deployed in forecasting stock markets. However, existing deep-learning-based models for news-based forecasts of stock trends are mostly black-box and difficult to explain. The procedure by which how final predictions are made within models keeps unknown, making it hard to interpret why one prediction should be better than the other. To provide explanations on predictions, this paper proposes to inject causal inference into model procedures and causally interpret predictions. We first generate a causal graph from financial news, and then integrate the information in the causal graph into a neural network model for stock trend prediction. Moreover, in order to better extract keywords from financial news we introduce a novel keyword extraction method named Distinguishable Word Filtering by Kolmogorov–Smirnov Test (DWF-KST). The experiment results on five financial datasets demonstrate that not only our proposed model explicitly provides an interpretation of prediction results, but also outperforms the state-of-art methods. the achieved results boost predictions of S&P 500 2-category from 89.7% to 97.4%, 3-category from 77.4% to 82.5%, and 5-category from 61.5% to 71.6%. For the other two indexes, the performances of Dow index improve from 86.2% to 90.2% and Nasdaq index improve from 76.4% to 78.9%. • We propose a method for stock trend prediction. • We use causal inference based on unstructured data. • Improve the interpretability of DL-based stock prediction models. • We propose DWF-KST for keyword selection in financial news. [ABSTRACT FROM AUTHOR]