Comparing Technical and Fundamental Indicators in Stock Price Forecasting

摘要

This paper evaluates whether Fundamental or Technical analysis is better when forecasting stock prices with machine learning models; further, it considers whether combined use of the two approaches is beneficial. Tests run on 140 companies from the S&P 500 indicate that models using indicators based on Fundamental analysis outperform those using indicators from Technical analysis with the level of outperformance varying across industries. Furthermore, in over 95% of cases, using Combined indicators results in lower RMSE compared to using Fundamental or Technical indicators alone.