Stochastic Volatility Analysis Model of regional financial market based on S-type membership function

Abstract

In order to overcome the low precision of membership degree calculation and random fluctuation analysis in traditional regional financial market random fluctuation analysis model, this paper proposes a new regional financial market random fluctuation analysis model based on S-type membership function. This paper analyzes the characteristic types of regional financial market random volatility, constructs the expected return membership function and risk membership function of regional financial market through S-type function, and on this basis, analyzes the time series data of regional financial market, and obtains the first-order random volatility model and local random volatility model. The local stochastic volatility model is extended to obtain the regional financial market stochastic volatility analysis model. Finally, through the volatility persistence parameters and volatility level parameters, the analysis of regional financial market random volatility is completed. The experimental results show that, compared with the traditional analysis model, the membership calculation accuracy and random volatility analysis accuracy of the constructed model are greatly improved, and the model has stronger practical application performance, which helps regional financial markets better apply volatility risk.