Application Of Data Mining In Stock Investing Fund Industry

Stock investment fund is a new industry in our country. Those fund managers always try to gain outstanding achievements by looking for stocks whose values have been lowed. Recently the market disappointed most of the investor. How to find out the investing chance becomes the most import task which resides on the fund company. Stock analysis has been proved to be an effective method to find out valuable stock. But internal fund companies are short of such ability because of the short developing history. So they come to stock analysis company for help. Stock report is the carrier. But this raises another issue: how to define stock vendor's analysis ability? And who are more trustable?Data mining are mature day by day and could be used to deal with this issue. This document will apply data mining to the analysis of stock report written by stock vendor. By the analysis on this report, it could supply some scientific conclusion on stock vendor's analysis ability.First of all, this paper introduces the fundamental concepts of data mining, how to do that, the major algorithm and the tendency. Then the paper analyses the status of fund industry, how the fund management company operates and makes investment decision, demonstrates the importance of researching papers coming from stock vendor. After that the paper explains what data mining can devote in this field, to help fund Management Company to analysis and evaluate the stock reports. The paper then go to explain how to import the original reports into database, abstract the data and prepare data for data mining. This needs lots of applications, such as market data auto import system, report auto import system and report management system.After that the paper applies association analysis researches the relationship between the stock codes recommended by a stock vendor. By doing that it could be known that whether this stock vendor could catch most of the investment chance, or just focusing on a little piece of market. At the same time the paper also demonstrates how to analyze the recommendations among different stock vendors to find out if anyone of them follows top 1 company blindly.