Jurnal Teknik Industri Terintegrasi (JUTIN)
Vol. 6 No. 3 (2023): July 2023

Comparison Random Forest Regression and Linear Regression For Forecasting BBCA Stock Price

Arif Mudi Priyatno (Universitas Pahlawan Tuanku Tambusai)
Lailatul Syifa Tanjung (Universitas Pahlawan Tuanku Tambusai)
Wahyu Febri Ramadhan (Universitas Pahlawan Tuanku Tambusai)
Putri Cholidhazia (Universitas Pahlawan Tuanku Tambusai)
Putri Zulia Jati (Universitas Pahlawan Tuanku Tambusai)
Fahmi Iqbal Firmananda (Universitas Pahlawan Tuanku Tambusai)



Article Info

Publish Date
28 Jul 2023

Abstract

Stock trading is a popular financial instrument worldwide. In Indonesia, the stock market is known as the Indonesia Stock Exchange (BEI), and one actively traded stock is PT Bank Central Asia (BBCA). However, predicting stock price movements is challenging due to various influencing factors. Investors use fundamental and technical analyses for decision-making, but results often vary. Machine learning, particularly random forest regression and linear regression algorithms, can be used for stock price forecasting. In this paper, we compares these two machine learning methods to forecast BBCA stock prices, aiming to provide more accurate and effective solutions for investor's investment and trading decisions. The evaluation results of cross-validation mean squared error (MSE), root mean squared error (RMSE), mean absolute error (MAE), and mean absolute percentage error (MAPE) for linear regression were 0.12848, 0.35807, 0.29570, and 0.0036%, respectively, while for random forest regression were 27473.76, 158.04, 142.70, and 1.7153%. These findings indicate that linear regression outperforms in forecasting performance.

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Journal Info

Abbrev

jutin

Publisher

Subject

Decision Sciences, Operations Research & Management Energy Engineering Industrial & Manufacturing Engineering Mechanical Engineering

Description

Jurnal Teknik Industri Terintegrasi merupakan jurnal yang dikelola oleh Program Studi Teknik Industri Fakultas Sains dan Teknologi Universitas Pahlawan Tuanku Tambusai yang menjebatani para peneliti untuk mempublikasikan hasil penelitian di bidang ilmu teknik dan teknik industri mencakup proses ...