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Decision-Making Process Using Neuro-Fuzzy Model for Capital Market

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F19%3APU131991" target="_blank" >RIV/00216305:26510/19:PU131991 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Decision-Making Process Using Neuro-Fuzzy Model for Capital Market

  • Original language description

    The paper discusses the proposal of a neuro-fuzzy model as support in decision-making on investments in exchange traded funds (ETF) focused on the real estate sector and listed on the American exchange. The created model is based on the neuro-fuzzy inference system (ANFIS). The methods of analysis, synthesis and mathematical neuro-fuzzy modelling were used to achieve the goal. Selected financial indicators represent the fuzzy system input. Based on the Gauss membership function, the neural network generates the fuzzy rules. The model output is a signal to buy or sell the ETF stock. The paper aims to create a suitable model for decision-making on investments in analyzed investment instruments based on selected financial indicators. The proposed neuro-fuzzy decision-making model consists of 4 input variables, one rule block (with 81 fuzzy rules) and one output variable (to invest or not to invest). The input variables and the output variable have three attributes (L – large, M – medium, S – small). The created ANFIS model is a suitable tool for investment decisions on buying or selling ETF stock. The model significance lies mostly in the fact it provides the expert analyst or potential investor with enough space to express and incorporate their subjective evaluation in the model. The paper discussed the proposal of a neuro-fuzzy model as support in decision-making on ETF investment opportunities listed on the American market. For further research, the proposed model should be extended by other significant fundamental indicators, possibly incorporate technical and psychological indicators and monitor the strength of the revised model in other capital markets as well.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

  • OECD FORD branch

    50202 - Applied Economics, Econometrics

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2019

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Perspectives of Business and Entrepreneurship Development in Digital Transformation of Corporate Business

  • ISBN

    978-80-214-5756-0

  • ISSN

  • e-ISSN

  • Number of pages

    197

  • Pages from-to

    175-182

  • Publisher name

    Faculty of Business and Management, Brno University of Technology

  • Place of publication

    Brno, Czech Republic

  • Event location

    Fakulta podnikatelská VUT v Brně

  • Event date

    Apr 30, 2019

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article