Social network-based stock correlation analysis and prediction

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

In order to forecast the price movement with the correlation between two different stocks, the model of Stock Social Network (SSN) is proposed to represent and analyze the intrinsic complex relationship. We choose 313 stocks from 9 industries to build an evolution model of SSN, which predicted that some stocks clusters are isolated and the nodes and edges in SSN are decreasing distinctly step by step with the change of threshold δ from 0.7, 0.75 and 0.8, respectively. Meanwhile, the coverage rate of nodes in SSN arrives 0.2076 at δ = 0.8, in reverse, the 79.24% nodes is trimmed during the process of evolution of SSN. Based on these results, we design a new portfolio strategy based on new index, named CSSNI, to optimize the asset pricing model. The results show that the ratio of return is 0.92666 based on the CSSNI, which is much better than the result by traditional strategy.

Original languageEnglish
Title of host publicationProceedings - 2016 International Conference on Identification, Information and Knowledge in the Internet of Things, IIKI 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages573-576
Number of pages4
ISBN (Electronic)9781509059522
DOIs
StatePublished - 2 Jul 2016
Event2016 International Conference on Identification, Information and Knowledge in the Internet of Things, IIKI 2016 - Beijing, China
Duration: 20 Oct 201621 Oct 2016

Publication series

NameProceedings - 2016 International Conference on Identification, Information and Knowledge in the Internet of Things, IIKI 2016
Volume2018-January

Conference

Conference2016 International Conference on Identification, Information and Knowledge in the Internet of Things, IIKI 2016
Country/TerritoryChina
CityBeijing
Period20/10/1621/10/16

Keywords

  • Asset Portfolio
  • Price Movement Forecasting
  • Risk of Stock
  • Stock Social network

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