ARTÍCULO
TITULO

A Hybrid Model for Portfolio Optimization Based on Stock Clustering and Different Investment Strategies

Siamak Goudarzi    
Mohammad Javad Jafari    
Amir Afsar    

Resumen

In today's dynamic business environment, in order to compete in the market, financial institutes are trying to find the best portfolio policy that in turn leads to an increase in the return and a decrease in the risk for the investors. The objective of this study is to develop a portfolio considering the behavior of investors in risk taking. This research aims to support investors, experts and intermediate managers in establishing optimized portfolio of stocks according to investment strategy. The proposed model has used the five indexes of risk, return, skewness, liquidity and current ratio of 66 companies that enlisted in Tehran Stock Exchange Market and then clustered different companies using the hybrid method of clustering algorithm. After that, the clusters ranked using Topsis method. Ultimately, using genetic algorithm, the portfolio is established for different classes of investors with respect to their risk-taking level. The results show that the proposed model in comparison to general index, the industry index and the index of 50 more active companies are better in Tehran Stock Exchange. Keywords: portfolio optimization, clustering, neural network, genetic algorithmJEL Classifications: C880, C610

 Artículos similares

       
 
Ashish Sedai, Rabin Dhakal, Shishir Gautam, Anibesh Dhamala, Argenis Bilbao, Qin Wang, Adam Wigington and Suhas Pol    
The Machine Learning/Deep Learning (ML/DL) forecasting model has helped stakeholders overcome uncertainties associated with renewable energy resources and time planning for probable near-term power fluctuations. Nevertheless, the effectiveness of long-te... ver más
Revista: Forecasting

 
Mirza Sikalo, Almira Arnaut-Berilo and Adela Delalic    
Comparing portfolio performance is complex due to the fact that each model is dominant in its own risk space. Since there is no single dominant performance measure, the research problem is how to incorporate several different measures into a performance ... ver más

 
Amal Al Ali, Ahmed M. Khedr, Magdi El Bannany and Sakeena Kanakkayil    
Despite the obvious benefits and growing popularity of Machine Learning (ML) technology, there are still concerns regarding its ability to provide Financial Distress Prediction (FDP). An accurate FDP model is required to avoid financial risk at the lowes... ver más

 
Ahmed Kamara and Niraj P. Koirala    
In this paper, we study the effects of uncertainty shocks in a quantitative framework where firms in the corporate sector are constrained by credit. Specifically, we formulate borrowing constraints as a nested function that features both earnings and cap... ver más

 
Damianos P. Sakas, Nikolaos T. Giannakopoulos, Markos Margaritis and Nikos Kanellos    
Due to the volatility of the markets and the ongoing crises (COVID-19, the Ukrainian war, etc.), investors are keen to exploit any potential chances to make profits. For this reason, the idea of harvesting data from cryptocurrency market users takes an i... ver más