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Portfolio Management Using Artificial Intelligence

  • Rakshit GuptaEmail author
  • Yogesh Mahajan
  • Punit Mukesh Ahuja
  • Jyoti Ramteke
Conference paper
  • 45 Downloads
Part of the Algorithms for Intelligent Systems book series (AIS)

Abstract

The framework proposed in this paper is designed such that a client gets stable returns based on his/her risk-taking capability. It gives the optimal weights allocated in different asset classes like risky and risk-free assets based on the risk aversion factor of the client. Diversification of stocks is achieved by clustering the stocks with the K-means clustering algorithm. Portfolio optimization is achieved using the genetic algorithm. The framework provides the optimal proportion to the selected individual stocks and risk-free assets. Stocks of companies listed under S&P 500 are used for evaluating the framework.

Keywords

Portfolio management Portfolio optimization Genetic algorithm K-means clustering Asset allocation Stock clustering Evolutionary algorithm 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Rakshit Gupta
    • 1
    Email author
  • Yogesh Mahajan
    • 1
  • Punit Mukesh Ahuja
    • 1
  • Jyoti Ramteke
    • 1
  1. 1.Sardar Patel Institute of TechnologyMumbaiIndia

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