Analyzing Nickel Stock Price Prediction: A Comparative Study of Long Short-Term Memory and Convolutional Neural Network Models

This research delves to predict PT Vale Indonesia Tbk stock price as an experiment on Indonesian stock using three models: naïve, LSTM, and 1D-CNN. Our analysis emphasizes the importance of matching model architectures to data properties. We compare models' performance with fiveday window for predict one-day prediction output. Interestingly, the single-layer LSTM outperforms the 1D-CNN even with similar hyperparameters, showcasing its strength in capturing long-term temporal dependencies crucial for nickel prices. While the 1D-CNN excels at identifying short-term patterns, its limited receptive field hinders long-term dependence. Recognizing the potential of both models, we encourage exploring hybrid architectures combining LSTM and CNN strengths for further improvement in financial forecasting. The experiment result shows single-layer LSTM outperforms a 1D-CNN with similar settings.