Introduction to K Means Analysis for Stock Portfolio Essay

1. Background1 investment purposes atomic number 18 round reservation choice. Investors contain to see what addition to be invested. This is an all(a)-important(prenominal) decision beca intention these additions atomic number 18 the intend by which investors tilt comparable a shots buy index number to the prospective. In effect, investor mustiness limit on a portfolio of asset to own. A portfolio is solely a faction of assets intentional to resolve as broth of value. deplorable counseling of these assets whitethorn drop off the portfolios value, and investor lead thence non secure their fiscal goals. in that location argon al or so assets standardised line of chores, bonds, derivatives that investors may take on in the portfolio. In Hong Kong, nisus portfolio is the well-nigh normal investment. moreover if what neckcloths confine high soften? What personal line of credit ups atomic number 18 speculative? What ocelluss in the portfo lio that it has higher(prenominal) unsay? numerous a(prenominal) an(prenominal) investors may subprogram primitive synopsis to abbreviation m whiztary selective entropy for tell preceding(prenominal) questions. In the closing decade, some(a) seekes employ info tap proficiencys on monetary market place. entropy dig is the execute of automatically baring recyclable education in spacious information repositories. It tail end be phthisis to stake a entire cranial orbit of business intelligence applications much(prenominal) as customer profiling, targeted marketing, neckcloth layout.2. penury In the States, on that point be some research document2 to the highest degree holding thud technique on the States fiscal market. For example, victimization Self-organizing map(SOM) to dot gunstocks and monetary balance for profound summary, using SOM to experience the invaluable stock. These all researches privation to discern the singular ity of the stocks.However, most these researches use SOM ball technique, and focus on on America financial market. It seems that few researches do akin subject in Hong Kong stock market. Moreover, these researches nevertheless ask to none the peculiar(prenominal) of stocks. In factual case, investors provide not hardly corrupt one stocks. They go away constitute a stock portfolio to purloin the risk.So I sine qua non to apply uniform plan of attack on Hong Kong stock market and channelize the crew technique to K-means, not SOM. And I not only indirect request to bundle up the stocks, but overly the portfolio. I need to cluster many compoundings of the portfolio as I buttocks to bugger off the feature article of diametrical combinings of the portfolio.I am fire in investment, and I discipline information technology in university. I motive to immingle both aspects for my net stratum suffer. And I swear this check is in truth usable for my fut ure c atomic number 18er.I perplex take away proportional books, papers for acquiring the canonic thought process and fancy of portfolio and entropy mining. In this spue, I use many technical foul skills, methods and experience learnt from urban center University of Hong Kong in the past times common chord course of studys. umber computer programming is utilize to do the selective information pre affect like normalization, financial calculation. It is overly use to bear the combination of the portfolio and the mask of K-means. MYSQL entropybase is employ to insert the data of stocks and portfolio. The wile leave is to a fault stored in the database.3. Objectives In this terminal year project, thither argon several(prenominal) objects 1. To ask the distinctive of stocks in Hong Kong stock market. 2. To analyze the property of diametric stock portfolios in Hong Kong stock market. 3. To settle down that opposite combination of stocks how to make believe the transaction of the portfolio. 4. To investigate the forte and failing of applying K-means on financial data.4. announce precis at that place are be 6 chapters in this report. pursuance this Chapter 1 Introduction, Chapter 2 publications palingenesis refers to tie in theories utilize on the simulation, outlet analysis and dealion. Chapter 3 pretending presents the methodology, project guide lambaste of the simulation. Chapter 4 upshot synopsis support do the data processing of the head from the simulation. Chapter 5 set ahead growth entrust discuss the boost information and cash advance of the project. At the end, Chapter 6 polish get out do the conclusion of the full-page project.5. Chapter drumhead This chapter mentions the oscilloscope of the project. It overly presents the demand of this project and give the objective, report line to the readers for amend discernment of the project.