A Research of the Investment Weights of Technology Stocks and Traditional Stocks

Shitao Yu

doi:10.54097/py1j9g87

Authors

Shitao Yu

DOI:

https://doi.org/10.54097/py1j9g87

Keywords:

Investment Strategy, Technology Stocks, Traditional Stocks, Risk Management, Machine Learning.

Abstract

This paper delves into the intricate realm of investment strategies, with a specific focus on navigating the dynamic landscapes of technology stocks and traditional stocks. The paramount considerations revolve around investor selection and risk management, pivotal elements for achieving sustainable growth. The study meticulously examines three distinct portfolio strategies: technology stocks, traditional stocks, and a synergistic hybrid of the two. In an innovative approach, machine learning algorithms are deployed to predict and optimize portfolio changes, adding a layer of adaptability to the investment landscape. A comprehensive analysis employs various financial indicators to gauge the performance of these portfolios, shedding light on their risk-reward profiles. The study not only caters to investors with different risk appetites but also underscores the significance of machine learning in dynamically adjusting portfolios to match the evolving market conditions. This adaptability is crucial for striking a delicate balance between growth and stability, aligning with individual risk preferences. Moreover, the research scrutinizes cumulative returns in contrast to holding period returns, providing nuanced insights into the efficacy of each strategy over time. In essence, the document offers a multifaceted perspective, leveraging machine learning to empower investors in navigating the complex interplay of technology and traditional stocks, fostering informed decision-making in an ever-changing financial landscape.

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