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Journal : Engineering, Mathematics and Computer Science Journal (EMACS)

A Study of Machine Learning Approach to Predict the Out performance Market of Japan’s Stock Price Amadea, Charissa; Karina, Karina; Addina, Kanisha; Adara, Keisha; Pasaribu, Asysta
Engineering, MAthematics and Computer Science Journal (EMACS) Vol. 7 No. 2 (2025): EMACS
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/emacsjournal.v7i2.12905

Abstract

This study employs machine learning algorithms to estimate the stock performance of Japanese companies in 2022, with a focus on examining the relationship between significant financial factors—Market Capitalization (Market Cap), Price-to-Earnings Ratio (PER), Price-to-Book Value (PBV), Return on Equity (ROE), and Debt-to-Equity Ratio (DER)—and stock performance, classified as either high-performing or low-performing. These factors are designated as independent variables. The dataset comprises 1,000 publicly listed companies in Japan and is analyzed using a logistic regression model. The dependent variable in this study is stock performance. The Akaike Information Criterion (AIC) guided model selection to optimize predictive accuracy and model complexity. The dataset was split into 70% for training and 30% for testing to ensure robust model validation. The best-performing model achieved a prediction accuracy of 62.67%, demonstrating strong sensitivity (88.83%) but weak specificity (18.75%). An AUC value of 0.6226 indicates moderate discriminatory power. The model shows good capability in detecting underperforming stocks, while its limitation lies in classifying well-performing stocks. The study suggests enhancing prediction accuracy by incorporating additional relevant variables such as macroeconomic indicators or market trends, as well as employing more complex machine learning algorithms like Random Forest or Gradient Boosting. These findings not only contribute to the literature on stock market prediction but also offer practical insights for investors in making investment decisions.
Co-Authors Adara, Keisha Addina, Kanisha Afini, Irsyah Alfiasari Alfinur, Muhammad Aliya, Zafirah Amadea, Charissa Ambarwati, Mega Suci Andriani, Finna Anita Suharyani Apriani, Riza Arofiani, Fifi Artianta, Wenny Asbi, Asbi Asha, Asha Asifa, Siti Nur ASMAN SADINO, ASMAN Aulia Ulmillah Aulia, Atiqa Bangsawan, Muhammad Ali Barokah, Nadya Batubara, Gracia Mianda Caroline Cahyani, Ismira Dwi Cahyati, Effan Ceskakusumadewi Darliana Sormin Dra. NURSYAHRA M.Si Dra. NURSYAHRA M.Si Dwi Hastuti Dwijowati Asih Saputri Dyah Ika Rinawati Ecca, Suleha Ekawati , Sanny Eko Pramudya Laksana Fadilah, Muhammad Ilham Fauziah, Nayla Nazwa Febriyana, Kailah Feronica, Shinta Guna, Shubhan Tri Habibah, Azizatul Hadi, Yusron Hamdani Hamdani Harahap, Desmidar Hasibuan, Najwa Naumira Hasibuan, Najwah Hasibuan, Salsa Bila Henny Helmi Hermawan, Belya Anindia Hilda Zulkifli Ika Listiana Imam Rosadi Isfani, Delia Jannah, Sri Naimatul Juliani, Intan Julianti, Umi Fania Jumaita Nopriani Lubis Junita Junita Kasman, Rosmini Kesuma, Lucky Indra Lailah, Susi Lanta, Jumiati Lela, Siti Liza Yulia Sari Lubis, Ramadhan M. Fahrul Husni Marsely, Anisa Masliah, Maghfira Izani Maswadi - Moh. Irtadji Muna, Afifah Najdatul Muslihati Nababan, Jeremia Nababan, Sarah Amelia Novrikasari Novrikasari, Novrikasari Novriyanti Lubis, Novriyanti Nurvalentin, Nurvalentin Octavia , Pipin Oktapiandi, Dinda Maelani Pasaribu, Asysta Pratama, Sam Adya Diva Puspita, Kharisma Chandra Rahayu, Ethics of Styo Rahmadhena, Melissa Princess Ramadhan, Fardiansyah Rambe, Mila Sapitri Rasyid, Rustam Efendy Rena Rena Riko Gesmani Rinandha, Cindy Meiliani Riska Prasetiawati, Riska Rizky Andriyanto, Muhammad Rosliana, Iis Rosliana, Iis Sabil, Ridho Safitri, Wulan Eka Saifullah Saifullah Salsabillah, Maya Sandha, Dhiya Putri Aqilah Sandy Tjang, Yanto Sari , Purwita Sianturi, Natalia Fronika Silvia Silvia Silvia Wijaya Simbolon, Lundu Wijaya siregar, salim Sitorus, Oktavia Sobariah, Siti Sri Wahyuni Sukma, Dessy Tya Melati Suryadi Suryadi Suryana, Shendi Susanti, Yunita Widya Sutandi, Sutandi Sutarti Sutarti Theodorus Rexa Handoyo Tri Faranita, Tri U. Evi Nasla Vebriani, Helly Verawaty Verawaty Victoria, Brigita Wahyuningsih, Komang A Wardana, Budi Widya Ningsih Widyastuti, Tias Wulan, Ananda Ayu Yusnaldi , Eka Zaelani, Ahmad