A fund-stock network projection model

Chuanzhe Zhang, Shaopeng Pang*, Hao Yu, Guozheng Han

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

The equity fund is a mutual fund that invests principally in stocks, which can offer better returns and more adequate risk management. We propose a fund-stock network projection model to study the investment laws of the equity fund. This model allows us to calculate the importance of each stock, which can effectively quantify the relative investment strength of the equity fund in stocks. We studied the investment level, investment distribution and investment tendency of the equity fund based on the importance of stocks. The simulation results show that the investment level of the equity fund is better than the average investment level of the market. The investment distribution of the equity fund exhibits a near-power law distribution with fat tails. The equity fund is most biased towards investing in the finance industry, and adjusts the investment ratio of different industries according to the fluctuations of the stock market. Then an investment strategy is proposed based on the importance of stocks, which provides some references for investors.

Original languageEnglish
Article number125630
JournalPhysica A: Statistical Mechanics and its Applications
Volume566
DOIs
Publication statusPublished - 15 Mar 2021
Externally publishedYes

Fingerprint

Dive into the research topics of 'A fund-stock network projection model'. Together they form a unique fingerprint.

Cite this