Research on Stock Investment Strategy of Semiconductor Industry Based on PCA Modeling

Abstract

With the continuous innovation of information technology, in order to meet the needs of the development of high-precision industries, the global semiconductor industry's market demand is growing and expanding. In recent years, the western countries on China's semiconductor industry to chase and intercept, played to determine the future strategic dominance between the countries, the right to survive the industrial chain of the chip war. In order to take advantage of the opportunity to invest in well-developed semiconductor companies, this paper selects 134 stocks in the semiconductor industry as a stock pool from the Flush IFIND database, and adopts the PCA principal component analysis method, selects 15 fundamental indicators, and analyzes and sorts out the stocks from the five analytical indexes of profitability, development ability, profitability, solvency and operating ability, and conducts a comprehensive evaluation and analysis of stocks. Based on Markowitz theory, the optimal risk portfolio is finally determined. At the same time, this paper is based on the pyramid model for position management, combined with averaging trading strategy and high sell-low suck strategy real-time position adjustment, through 43 days of trading to observe the accuracy of this investment strategy.