Presenter : Bei -YI Jiang Authors : Hai V. Pham, Eric W. Cooper, Thang Cao, Katsuari Kamei 2014. Information Scie

1. Hybrid Kansei-SOM Model using Risk Management and Company Assessment for Stock Trading Presenter : Bei-YI JiangAuthors : Hai V. Pham, Eric W. Cooper, Thang Cao, KatsuariKamei2014. Information Sciences

2. Outlines • Motivation • Objectives • Methodology • Experiments • Conclusions • Comments

3. Motivation • Even using several commercial trading stock software applications and intelligent systems to make trading decisions, investors may face uncertain conditions in dynamic stock market environments.

4. Objectives • To evaluate companies, select potential companies (superior stocks) and eliminate risky stocks at the right trading time, using Group Decision Making (GDM), together with investment risks, reducing losses and achieving the greatest investment returns.

5. Methodology

6. Methodology

7. Methodology • Hybrid Kansei-SOM model

8. Methodology Screen out companies 1. • Proposed model and mechanisms of data process 2.1 Expert preferences 2.2 In Kansei stock matrix 2.3 In Kansei risk matrix Input data 2. Select potential companies 3.1 Visualizing Kansei stock matrix 3.2 Visualizing Kansei stock matrix 3. Calculate expert preference distances 4.1 Calculating weights 4.2 Updating weights 4. a. Risk decision matrix b. Expert decision matrix Compare stock matrix & risk matrix 5.

9. Methodology Screen out companies 1. Input data 2. Select potential companies 3. Calculate expert preference distances 4. Compare stock matrix & risk matrix 5.

10. Methodology Screen out companies 1. 2.1 Expert preferences 2.2 In Kansei stock matrix 2.3 In Kansei risk matrix Input data 2. Select potential companies 3.1 Visualizing Kansei stock matrix 3.2 Visualizing Kansei stock matrix 3. Calculate expert preference distances 4.1 Calculating weights 4.2 Updating weights 4. a. Risk decision matrix b. Expert decision matrix Compare stock matrix & risk matrix 5.

11. Methodology Screen out companies 1. Input data 2. Select potential companies 3. Calculate expert preference distances 4. Compare stock matrix & risk matrix 5.

12. Methodology • Fuzzy evaluation model for company assessments and risk management • Kanseievaluation • Quantitative factor for Data Normalization

13. Methodology • Fuzzy evaluation model for company assessments and risk management • Qualitative factor Evaluation using Fuzzy Expression and Inference • Fuzzy Expression

14. Methodology • Fuzzy evaluation model for company assessments and risk management • Qualitative factor Evaluation using Fuzzy Expression and Inference • Fuzzy Inference Process

15. Methodology • Fuzzy evaluation model for company assessments and risk management • Kanseirisk matrixin an evaluation

16. Methodology • Fuzzy evaluation model for company assessments and risk management • Kansei stock matrix in an evaluation

17. Experiments

18. Experiments

19. Experiments

20. Experiments

21. Experiments

22. Experiments

23. Experiments

24. Conclusions • This approach of the proposed system using GDM focuses on applying Kansei evaluation integrated with SOM model to enhance investment capability of trading systems, reduce risky stocks and obtain the greatest investment returns.

25. Comments • Advantages • reduce risky stocks • obtain the returns • Applications • stock trading system • risk management