A Research On Optimization Of Copper Processing Enterprises' Hedging Management Based On Data Mining

Hedging is the behavior that in order to avoid the risk of price fluctuation,enterprises use futures as an instrument of risk management to reduce or transfer the risk of price fluctuation.Hedging is also one of the main functions of futures market.The effect of enterprises'hedging has a very important influence on the stability of enterprises' operation while it usually depends on the choice of hedging strategies,the determination of the optimal hedging ratio and the details of hedging operation.Aiming at the problems found in the hedging management of copper processing enterprises,this paper focuses on the further studies about the selection and optimization of enterprises'hedging strategies through the exploratory analysis of data mining,they draw the relevant conclusions of reducing the risk of hedging.The other risk control measures proposed in this paper can also provide reference for further optimization of enterprises'risk management.After the part of the introduction,the relevant contents are introduced from simple to complex in this paper,which include the theoretical basis,the strategies,the models,the empirical analysis of the model and the conclusions.Specifically,it firstly introduces the concept and the principle of hedging operation and the main ideas in each stage of theoretical development as the part of theoretical basis.Then it introduces the concepts of price chaos and data cleaning,and it gradually analyzes four hedging strategies'models with the perspective of data mining in multiple frequency bands.Then it analyzes the current situation of the Company A's hedging operation,before the calculation of the models' optimal hedging rates is combined with the closing price of copper main continuous contract in Shanghai Futures Exchange and the price of Changjiang Nonferrous 1#copper.Then it draws three conclusions which are the comparison of dynamic and static hedging strategies,the effect of multi-frequency division and the relationship between risk reduction and value maintenance,which are summarized from the comparison of the strategies' effects in risk reduction and value maintenance in 2018.The conclusions can effectively help copper processing enterprises reduce the risk of price fluctuations.Finally,this paper analyzes other risks that copper processing enterprises often face in hedging,and the countermeasures are proposed to further optimize copper processing enterprises'risk management.