Application of Clustering Analysis to Stock Analysis
Qingdong Li · 2005
Now there are almost two thousand stocks in Chinese stock market. While investing stock, it's necessary to analyze and select stocks. In order to reduce investment risk, stocks that have strong profit-gaining abilities and better financial indexes should be invested. But there are many kinds of stock evaluating indexes that contain different meanings. How to synthesize various kinds of indexes becomes very important. Clustering analysis method is adopted to analyze and classify petroleum and chemical block in the stock market. As a result, clustering analysis can reflect the profit-gaining ability and development level of marketing company by synthesizing plenty of financial indexes, which provides a better base for classifying and evaluating company.