Data mining technique with cluster anaysis use K-means algorithm for LQ45 index on Indonesia stock exchange

Abstract

This study aims to apply data mining techniques with cluster analysis on stock data registered in LQ45 in Indonesia Stock Exchange. The cluster analysis used in this method is k-means algorithm, the data in this research is taken from Indonesia Stock Exchange. The cluster analysis in this study analyzed the characteristics of data volumes and stock values, while the results in this study were presented in the form of cluster members visually. Therefore, this cluster analysis in this research can be used for quick and efficient identifier for each member of LQ45 index cluster based on share value for each cluster and its volume. The identification results can be used by beginner-level investors that begun to be interested in stock investments to help make informed decisions about stock trading on desired cluster groups.