Advanced Stock Market Prediction Using Unsupervised Federated Learning Techniques

In the realm of stock market prediction, traditional supervised learning approaches often struggle with the vast and diverse nature of financial data, coupled with privacy concerns. This paper explores a novel methodology that combines unsupervised learning techniques with federated learning system to enhance stock market prediction models. We present a comprehensive system where local models, trained using unsupervised methods, contribute to a global model through federated aggregation. By leveraging federated learning, our approach allows multiple financial institutions to collaboratively train models on their decentralized data while preserving data privacy. This approach addresses the challenges of data heterogeneity and communication efficiency, providing a robust and scalable solution for advanced stock market forecasting. Our experiments demonstrate that integrating unsupervised learning with federated learning not only improves predictive accuracy but also enhances the model's ability to identify emerging market trends and anomalies. Finally, we compare our distributed data model with other machine learning models that use local data.