Analysis of stock market based on cellular automata

DOI

10.2991/wartia-16.2016.90How to use a DOI?

Keywords

Cellular Automata , Risk Hobby , Stock Market Volatility , Long-term investments .

Abstract

In this paper, a new cellular-automata-based stock market model is constructed. Differing from the previous models, this model takes amount of investors’ capital, the important factor, as a normally distributed random variable, into account. By combining with the characteristics of the current stock market and classifying the market investors, a random process to divide risk preferences is introduced, and two corresponding trading strategies are presented to more effectively simulate the real stock market. Through simulation study, it is deduced that the excessive speculation of investors is the critical factor of sharp fluctuations in the stock market, which is not conducive to the return of the fair value of the stock. At the same time, the average yields of the two investor types are compared, and it is concluded that there is no long-term investment value in current China's stock market and appropriate short-term investment can improve the return on investment.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Fucun Liu
AU  - Zhiyong Cai
PY  - 2016/05
DA  - 2016/05
TI  - Analysis of stock market based on cellular automata
BT  - Proceedings of the 2016 2nd Workshop on Advanced Research and Technology in Industry Applications
PB  - Atlantis Press
SP  - 451
EP  - 454
SN  - 2352-5401
UR  - https://doi.org/10.2991/wartia-16.2016.90
DO  - 10.2991/wartia-16.2016.90
ID  - Liu2016/05
ER  -