Stock Selection into Portfolio by Fuzzy Quantitative Analysis and Fuzzy Multicriteria Decision Making

Yodmun, Satit; Witayakiattilerd, Wichai

doi:10.1155/2016/9530425

Stock Selection into Portfolio by Fuzzy Quantitative Analysis and Fuzzy Multicriteria Decision Making

Author(s)

Yodmun, Satit

Witayakiattilerd, Wichai

Date Issued

January 1, 2016

Type

Article

DOI

10.1155/2016/9530425

Abstract

This paper presents a stock selection approach assisted by fuzzy procedures. In this approach, stocks are classified into groups according to business types. Within each group, the stocks are screened and then ranked according to their investment weight obtained from fuzzy quantitative analysis. Groups were also ranked according to their group weight obtained from fuzzy analytic hierarchy process (FAHP) and technique for order preference by similarity to ideal solution method (TOPSIS). The overall weight for each stock was then derived from both of these weights and used for selecting a stock into the portfolio. As a demonstration, our analysis procedures were applied to a test set of data.

Citation

Advances in Operations Research, 2016, 2016