Based The Copula Function Stock Correlation Analysis Systems Design And Implementation,

With the development of financial market in recent years, the managementof financial risk has become particularly prominent, so comprehensive andaccurate portray the correlation structure between the financial market hasbecome the focus of management in the financial market.Copula function toexport consistency and correlation measure can reflect the non-linearrelationship between variables, Copula function as a flexible non-linearcorrelation tools have been widely application in the modeling of financial risk.Based on the widely used of the Copula function, this paper analysis thecorrelation of profits rate on assets with the Copula function. The use of mixedprogramming in MATLAB and VC designed and implemented a stock analysissystem based on Copula function. The main work of this paper is as follows:First, the paper has reviewed the development of Copula functionsystematic, including the historical background and theoretical basis of Copulafunction, briefly introduces several correlation measure indicators based onCopula function and several financial time series model used for build marginaldistribution function of Copula model.Then, the paper describes the design process of system. An introduction ofthe overall research ideas and the database used in the system developmentprocess briefly, focusing on algorithm design process for Copula function in theMATLAB software, these algorithm design processes for VC call to solve theproblem of calculation used in this system.Again, the paper focuses on the design and implementation of the mainfunctional module of the system. This system design the function in twoperspectives, on the one hand, the system can use the two-dimensional Copulafunction to calculate the constant correlation coefficient and the dynamiccorrelation coefficient of the two stocks, on the other hand, the system neithercan use the two-dimensional Copula function to calculate the correlationcoefficient between the two stock nor can use the multi-dimensional Copula function to calculate the correlation between stocks. According to stock return,the system can automatically select a better financial time series model, in linewith the characteristic of different Copula function, a better fitting Copulafunction can be automatically selected, then the related correlation parameterscan be calculated.Finally, paper to use the system to analyze the correlation of the two stocks,a brief introduction of the system during use. This system is simple, convenientand good decision-making support for risk investment.