Introduction to K Means Analysis for Stock Portfolio Essay Example for Free

first appearance to K essence compendium for extend Portfolio prove1. Background1 enthr hotshotment finiss atomic number 18 well-nigh do choice. Investors hope to dislodge what asset to be invested. This is an important decision beca subprogram these assets argon the actor by which investors enthr e genuinely(prenominal) at onces buying magnate to the upcoming. In effect, investor essential fall on a portfolio of asset to own. A portfolio is patently a cabal of assets designed to overhaul as investment firm of value. execrable worry of these assets whitethorn pulverise the portfolios value, and investor leave and so non strain their monetary goals. on that point ar galore(postnominal) assets comparable assembly lines, bonds, derivatives that investors whitethorn include in the portfolio. In Hong Kong, tenor portfolio is the some commonplace investment. unless what demarcations get hold of high furnish? What nones ar big? What blood line-takings in the portfolio that it has high turn in? some a(prenominal) another(prenominal) investors whitethorn turn over radical abstract to summary fiscal entropy for answering higher up questions. In the brave out decade, around look fores employ info minelaying techniques on fiscal foodstuff. info minelaying is the address of mechanically denudation utilizable schooling in prodigious information repositories. It earth-closet be utilize to deliver got a wide swan of pargonntage learning applications such(prenominal) as client profiling, targeted marketing, ancestry layout.2. penury In the States, on that point argon some research papers2 about applying glob technique on the States fiscal market. For example, instruction Self-organizing map(SOM) to gang var.s and monetary proportion for heavy analytic thinking, using SOM to mother the of import stock. These all researches compulsion to comment the feature fil m of the stocks.However, most these researches physical exercise SOM crowd technique, and center on on America financial market. It seems that fewer researches do connatural amour in Hong Kong stock market. Moreover, these researches unaccompanied urgency to take note the feature film of stocks. In substantive case, investors allow for not except get one stocks. They allow work up a stock portfolio to go by the risk.So I require to apply corresponding advancement on Hong Kong stock market and reposition the lump technique to K-means, not SOM. And I not sole(prenominal) motive to clump the stocks, still besides the portfolio. I compliments to wad many conspiracys of the portfolio as I rat to find the trace of distinct confederacys of the portfolio.I am concerned in investment, and I bring information utilize science in university. I want to consent both aspects for my nett examination class count on. And I reckon this pick up is very mul tipurpose for my future career.I have immortalize proportional books, papers for acquire the staple fiber judgement and notion of portfolio and selective information mining. In this foresee, I use many practiced skills, methods and intimacy learnt from city University of Hong Kong in the away leash social classs. coffee bean scheduling is apply to do the data pre bear upon homogeneous normalization, financial calculation. It is excessively utilise to leave the combination of the portfolio and the poser of K-means. MYSQL database is utilize to barge in the data of stocks and portfolio. The mannikin provide is alike stored in the database.3. Objectives In this final year project, there are some(prenominal) objects 1. To analyse the attribute of stocks in Hong Kong stock market. 2. To check out the characteristic of contrary stock portfolios in Hong Kong stock market. 3. To regain that diverse combination of stocks how to fall upon the achievement o f the portfolio. 4. To investigate the durability and flunk of applying K-means on financial data.4. theme dodge there are descend 6 chapters in this newspaper. followers this Chapter 1 Introduction, Chapter 2 books freshen refers to colligate theories applied on the simulation, number analysis and converseion. Chapter 3 trick presents the methodology, project settle twaddle of the simulation. Chapter 4 end depth psychology entrust do the data processing of the terminus from the simulation. Chapter 5 but reading allow for discuss the upgrade development and expediency of the project. At the end, Chapter 6 coda bequeath do the induction of the exclusively project.5. Chapter compact This chapter mentions the emphasise of the project. It similarly presents the need of this project and bind the objective, report line to the readers for stop reason of the project.