Title: Economic investment risk prediction model and algorithm based on data mining method

Authors: Yi Chen

Addresses: Institute of Finance and Management, Guangzhou Institute of Technology, Guangzhou 510075, Guangdong, China

Abstract: Investment decisions have a broad and far-reaching impact on the operating conditions of the entire enterprise. Once the investment decision is wrong, it will bring huge risks. As a data analysis technology, data mining can simulate mathematical models or algorithms by analysing historical data, which greatly improves the accuracy of prediction. The purpose of this paper is to study the application of data mining technology in the field of investment management. This paper constructs an economic investment risk prediction model based on data mining. The research results show that the sensitive factor affecting the investment status in the model obtained by the data mining algorithm is the quick ratio. When the quick ratio is less than or equal to 1.603, the investment is one year; if the result is greater than 1.603, the investment is five years.

Keywords: investment risk; data mining; cluster analysis; factor analysis; decision tree.

DOI: 10.1504/IJMTM.2024.139492

International Journal of Manufacturing Technology and Management, 2024 Vol.38 No.4/5, pp.283 - 301

Received: 31 May 2022
Accepted: 05 Sep 2022
Published online: 03 Jul 2024 *

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