Stock Risk Assessment via Multi-Objective Genetic Programming

Abstract

Funding information None Recent exponential growth of investors in stock markets brings the idea to develop a predictive model to forecast the total risk of investment in stock markets. In this paper, an evolutionary approachwas proposed to predict the total risk in stock investment based on an S&P 500 database in a time period of 1991-2010 employing a multi-objective genetic programming alongwith an adaptive regression bymixing algorithm. The reasonable results suggest that the proposed model can be applied to various stock databases to assess the total risk of investment. The proposedmodel along with stock selection decision support systems can overcome the disadvantages of weighted scoring stock selection.