Research On The Stock Investment Return Based On Cultural Algorithms

At the moment, because of the cross and penetration in the science andtechnology fields, it have already can’t solve some topics instead of relying solely on afield theory and method. So some researchers began to make a research findings inthe field of applied to another field, gradually, the result of the many across fieldsdevelopment formed many edge science. After deep analysis of the advantages anddisadvantages in the theory of evolution and reference social evolution theory and ofthe existing research results, culture algorithmsis is put forward as a new algorithm.Culture algorithm is a kind of system based on double evolution knowledge, includingtwo evolution space: one is a population space composed of specific individual in theprocess of evolution, the other is a reliability space composed of experience ofknowledge in the process of evolution.Through the organic combination of populationknowledge and the existing some intelligence algorithms, cultural algorithm canimprove the performance of the whole algorithm. Cultural algorithm is a essentiallyoptimization algorithm and can be used in the machine learning, network security,optimization design, automatic control, pattern recognition and economics in field.This paper makes a study of the cultural algorithm in economics portfolio theory ofapplication.At first, This paper introduced the development of the culture algorithm and themodern investment, and then introduced the following research:First of all, this paper describes the frame of cultural algorithm calculation andthe two space of the frame (reliability space and population space) and eachfunctional function design (accept function, influence function and update function).Then introduced the differential evolution algorithm, including the basic principle ofalgorithm, the design of parameters, and the advantages and disadvantages of thisalgorithm. Based on the above two kinds of the advantages of the algorithm, thispaper will put the differential evolution algorithm into the culture of the algorithmframework and concluded the cultural differential evolution algorithm. And then withthe help of11test function, it test the culture differential evolution algorithm and twoother algorithms respectively, and the put out the satisfactory results. Second, introduced the traditional portfolio theory research method, this paperanalyzes the deficiency of previous theory, and then introduced the sign of theory ofmodern investment-Markowitz-investment theory, described the basic idea of thetheory, this paper analyzes the principle that portfolio investment can reduce overallrisk.Again, this paper was attempted the application of culture differential evolutionin the investment combination problem. Taking Markowitz-investment portfoliotheory as the research object, structure model of the investment portfolio with riskpreference, it is concluded that the corresponding nonlinear programming model isconstructed, and then structure the culture differential evolution algorithm to solovethis model. Then applicate testing data to simulation experiments, the results showthat culture differential evolution algorithm is more effective and fast than culturealgorithm to solve this problem. It proofs that the proposed culture differentialevolution algorithm is effective.Finally, through the analysis of2010annual trade status of all A share inshenzhen stock exchange, and then use the relevant software and programming ofdata to screen and calculate the status, and finally this paper choose the6stocksrequirements of A model portfolio. This paper put the corresponding data of the sixstocks into the risk preference model of the investment portfolio. Then respectivelywith cultural differential evolution algorithm, cultural algorithm and differentialevolution algorithm to solve the model. The experimental results shows that thecultural differential evolution algorithm could be in the faster speed to converge to theglobal optimal solution than the two other algorithm, and has good robustness. It alsoshows the practical application efficiency of this algorithm. With the optimalinvestment proportion, this paper bring in the examples to actual investmentcompared with investment results without using Markowitz-investment portfoliotheory, the results show the importance of the Markowitz-investment combinatorialtheory in the investment activities and proof the good optimal characteristics ofcultural differential evolution algorithm. So apply the algorithm to the economicinvestment field to help the investors take the more quick and accurate investmentdecision.