Impact of Palestine-Israel conflict on multinational stock prices use neural network and support vector machine comparison

Andriani, Wresti
Gunawan, Gunawan
Wahyuning Naja, Naella Nabila Putri

Jurnal Mantik
Vol. 8 No. 1 (2024): May: Manajemen, Teknologi Informatika dan Komunikasi (Mantik)

One form of prolonged geopolitical event is the conflict between Palestine and Israel, which has complex historical, political, and religious roots in the Middle East. This research aims to determine whether this conflict influences the share prices of the companies Unilever, McDonald's, and KFC. These three large companies are known as allies of one of the disputing countries. The method used by the Neural Network is compared with Support Vector Machine to find the best accuracy using RMSE and MAE. The greater the error value, the more affected the company is by this geopolitical factor. As a result, the accuracy of the SVM method is better than NN; the company most affected is KFC, with the RMSE value of 0.111, MAE of 0.020, followed by Unilever with RMSE 0.034, MAE 0.025 then McDonald's with RMSE 0.026 and MAE 0.116, is expected to help investors choose to invest in the company McDonald’s then Unilever.