SINVLIO: Using semantics and fuzzy logic to provide individual investment portfolio recommendations
Knowledge-Based SystemsPublished 1 September 2011
Ángel García-Crespo, José Luis López-Cuadrado, Israel González‐Carrasco, Ricardo Colomo‐Palacios, Belén Ruíz‐Mezcua
Citations35
SJR quartileQ1
SJR score1.93
SNIP2.34
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
TL;DR
SINVLIO (Semantic INVestment portfoLIO), a tool based on semantic technologies and fuzzy logic techniques that recommends investments grounded in both psychological aspects of the investor and traditional financial parameters of the investments, is presented.
Abstract
Portfolio selection addresses the problem of how to diversify investments in the most efficient and profitable way possible. Portfolio selection is a field of study that has been broached from several perspectives, including, among others, recommender systems. This paper presents SINVLIO (Semantic INVestment portfoLIO), a tool based on semantic technologies and fuzzy logic techniques that recommends investments grounded in both psychological aspects of the investor and traditional financial parameters of the investments. The results are very encouraging and reveal that SINVLIO makes good recommendations, according to the high degree of agreement between SINVLIO and expert recommendations
Keywords
Computer ScienceDecision SciencesEconomics, Econometrics and Finance
IEEE Transactions on Knowledge and Data EngineeringToward the next generation of recommender systems: a survey of the state-of-the-art and possible extensions
10,115 Citations2005Gediminas Adomavičius, Alexander Tuzhilin
This paper presents an overview of the field of recommender systems and describes the current generation of recommendation methods that are usually classified into the following three main categories: content-based, collaborative, and hybrid recommendation approaches.
ACM Transactions on Information SystemsEvaluating collaborative filtering recommender systems
5,762 Citations2004Jonathan L. Herlocker, Joseph A. Konstan +2 more
The key decisions in evaluating collaborative filtering recommender systems are reviewed: the user tasks being evaluated, the types of analysis and datasets being used, the ways in which prediction quality is measured, the evaluation of prediction attributes other than quality, and the user-based evaluation of the system as a whole.
International Journal of Human-Computer StudiesAn Experiment in Linguistic Synthesis with a Fuzzy Logic Controller
5,636 Citations1999E.H. Mamdani, S. ASSILIAN
Data & Knowledge EngineeringKnowledge engineering: Principles and methods
3,549 Citations1998Rudi Studer, V. Richard Benjamins +1 more
The paradigm shift from a transfer view to a modeling view is discussed and two approaches which considerably shaped research in Knowledge Engineering are described: Role-limiting Methods and Generic Tasks.
eCite Digital Repository (University of Tasmania)Artificial Intelligence: A Guide to Intelligent Systems
2,214 Citations2001Michael Negnevitsky
The book demonstrates that most ideas behind intelligent systems are simple and straightforward, and the reader needs no prerequisites associated with knowledge of any programming language.
Journal of Financial and Quantitative AnalysisBehavioral Portfolio Theory
1,019 Citations2000Hersh Shefrin, Meir Statman
Journal of Monetary EconomicsInvestor psychology in capital markets: evidence and policy implications
710 Citations2002Kent Daniel, David Hirshleifer +1 more
Journal of Business and PsychologyFinancial Risk Tolerance and Additional Factors That Affect Risk Taking in Everyday Money Matters
612 Citations2000John E. Grable
Journal of Management Information SystemsPersonalized Content Recommendation and User Satisfaction: Theoretical Synthesis and Empirical Findings
493 Citations2006Ting‐Peng Liang, Hung-Jen Lai +1 more
The findings indicate that information overload and uses and gratifications are two major theories for explaining user satisfaction with personalized services.
Financial Services ReviewFinancial risk tolerance revisited
434 Citations1999John E. Grable, Ruth H. Lytton
Knowledge-Based SystemsIntegration of genetic fuzzy systems and artificial neural networks for stock price forecasting
372 Citations2010Esmaeil Hadavandi, Hassan Shavandi +1 more
Results show that the proposed approach outperforms all previous methods, so it can be considered as a suitable tool for stock price forecasting problems.
Knowledge-Based SystemsManaging the consensus in group decision making in an unbalanced fuzzy linguistic context with incomplete information
309 Citations2009Francisco Javier Cabrerizo, Ignacio Javier Pérez +1 more
A consensus model to help experts in all phases of the consensus reaching process in group decision-making problems in an unbalanced fuzzy linguistic context with incomplete information is presented and it allows to achieve consistent solutions with a great level of agreement.
PLoS ONEAcute Stress Increases Sex Differences in Risk Seeking in the Balloon Analogue Risk Task
300 Citations2009Nichole R. Lighthall, Mara Mather +1 more
Acute stress amplifies sex differences in risk seeking; making women more risk avoidant and men more risk seeking, and Evolutionary principles may explain these stress-induced sex Differences in risk taking behavior.
Financial Services ReviewPsychological Biases of Investors
282 Citations2002H. Kent Baker, John R. Nofsinger
Academy of Management JournalStrategic Attributes and Performance in the BCG Matrix—A PIMS-Based Analysis of Industrial Product Businesses
263 Citations1982Donald C. Hambrick, Ian C. MacMillan +1 more
Journal of Economic PsychologyRisk attitude and market behavior: Evidence from experimental asset markets
261 Citations2007Gerlinde Fellner-Röhling, Boris Maciejovsky
Expert Systems with ApplicationsClustering Indian stock market data for portfolio management
228 Citations2010Sushovit Nanda, Biswajit Mahanty +1 more
This paper uses stock returns at different times along with their valuation ratios from the stocks of Bombay Stock Exchange for the fiscal year 2007-2008 to select stocks from the clusters to build a portfolio, minimizing portfolio risk and compare the returns with that of the benchmark index.
Information SciencesCollaborative filtering with ordinal scale-based implicit ratings for mobile music recommendations
224 Citations2010Seok Kee Lee, Yoon Ho Cho +1 more
A CF-based recommendation methodology based on both implicit ratings and less ambitious ordinal scales is proposed, and a specific consensus model typically used in multi-criteria decision-making (MCDM) is employed to generate an ordinal scale-based customer profile.
Knowledge-Based SystemsDealing with incomplete information in a fuzzy linguistic recommender system to disseminate information in university digital libraries
204 Citations2009Carlos Porcel, Enrique Herrera‐Viedma
This paper presents a new fuzzy linguistic recommender system that facilitates the acquisition of the user preferences to characterize the user profiles and includes tools to manage incomplete information when the users express their preferences.
Engineering Applications of Artificial IntelligenceQualitative analysis of user-based and item-based prediction algorithms for recommendation agents
184 Citations2005Manos Papagelis, Dimitris Plexousakis
This paper describes and evaluates several prediction algorithms, some of which are novel in that they combine user-based and item-based similarity measures derived from either explicit or implicit ratings, and compares both statistical and decision-support accuracy metrics of the algorithms against different levels of data sparsity and different operational thresholds.
Journal of Business and PsychologyDo Investment Risk Tolerance Attitudes Predict Portfolio Risk?
179 Citations2005James E. Corter, Yuh‐Jia Chen
The Journal of Psychology and Financial MarketsThe Psychology of Financial Decision-Making: Applications to Trading, Dealing, and Investment Analysis
174 Citations2001Denis Hilton
Financial Analysts JournalArtificial Neural Systems: A New Tool for Financial Decision-Making
154 Citations1990Delvin D. Hawley, John D. Johnson +1 more
An ANS is a computer program that simulates the processes by which human learning and intuition take place and is well suited to deal with unstructured problems, inconsistent information and real-time output.
Decision Support SystemsThe Social–Economic–Psychological model of technology adoption and usage: an application to online investing
153 Citations2004Prabhudev Konana, Sridhar Balasubramanian
The SEP model provides a foundation for a multidisciplinary approach to the study of electronic markets and online consumers in the fields of MIS, marketing, and finance.
Qualitative Market Research An International JournalCustomer empowerment in tourism through consumer centric marketing (CCM)
146 Citations2007Outi Niininen, Dimitrios Buhalis +1 more
Journal of Computational and Applied MathematicsPortfolio selection based on fuzzy cross-entropy
141 Citations2008Zhongfeng Qin, Xiang Li +1 more
The Kapur cross-entropy minimization model for portfolio selection problem is discussed under fuzzy environment, which minimizes the divergence of the fuzzy investment return from a priori one.
Expert Systems with ApplicationsIndividual and group behavior-based customer profile model for personalized product recommendation
123 Citations2007You‐Jin Park, Kun‐Nyeong Chang
Experimental results show that the proposed model based on individual and group behavior information such as clicks, basket insertions, purchases, and interest fields has a better recommendation performance than existing models.
Expert Systems with ApplicationsAn ontology-based business intelligence application in a financial knowledge management system
120 Citations2008Hilary Cheng, Yi-Chuan Lu +1 more
This work presents an ontology-based approach for BI applications, specifically in statistical analysis and data mining, and implements this approach in financial knowledge management system (FKMS), which is able to do data extraction, transformation and loading, and data cubes creation and retrieval.
The Journal of Private EquityLunar Cycle Effects in Stock Returns
119 Citations2003Ilia D. Dichev, Troy D. Janes
Journal of the Operational Research SocietyStrategic Management; Concepts and Cases
118 Citations1992Bernard Tate
SSRN Electronic JournalBehavioral Finance: Quo Vadis?
118 Citations2015Werner De Bondt, Yaz Gűlnur Muradoğlu +2 more
Financial Analysts JournalUnderstanding and Assessing Financial Risk Tolerance: A Biological Perspective
113 Citations1990W. V. Harlow, Keith C. Brown
A behavioral foundation for an individual's tolerance for financial risk offers hope that future risk-assessment procedures can be extended in a way that broadens the set of tools available to the portfolio manager.
Journal of Information TechnologySEMO: A Framework for Customer Social Networks Analysis Based on Semantics
112 Citations2010Ángel García-Crespo, Ricardo Colomo‐Palacios +2 more
The results of the evaluation of the experimental implementation of SEMO reveal a promising and viable platform from a technical perspective.
Expert Systems with ApplicationsA recommender system for research resources based on fuzzy linguistic modeling
111 Citations2008Carlos Porcel, A.G. López‐Herrera +1 more
The aim of this paper is to develop a recommender system for research resources based on fuzzy linguistic modeling that helps researchers and environment companies allowing them to obtain automatically information about research resources (calls or projects) in their interest areas.
Expert Systems with ApplicationsSem-Fit: A semantic based expert system to provide recommendations in the tourism domain
105 Citations2011Ángel García-Crespo, José Luis López-Cuadrado +3 more
Sem-Fit is presented, a semantic hotel recommendation expert system, based on the consumer's experience about recommendation provided by the system, which uses fuzzy logic techniques to relating customer and hotel characteristics, represented by means of domain ontologies and affect grids.
European Journal of Operational ResearchPortfolio selection with a new definition of risk
104 Citations2007Xiaoxia Huang
A new definition of risk for portfolio selection is given and a new type of model based on this definition is proposed and a hybrid intelligent algorithm is employed to solve the optimization problem in general cases.
Knowledge-Based SystemsAn early warning system for loan risk assessment using artificial neural networks
100 Citations2001Yang Bao-an, Ling Li +2 more
The paper demonstrates how to design a decision tool based on the BP model and shows that this method offers a good tool for early warning.
Financial Services ReviewThe development of a risk assessment instrument: a follow-up study
99 Citations2003John E. Grable, Ruth H. Lytton
Expert Systems with ApplicationsBuilding and evaluating a location-based service recommendation system with a preference adjustment mechanism
95 Citations2008Mu-Hsing Kuo, Liang-Chu Chen +1 more
In the recommendation model, an adaptive method including long-term and short-term preference adjustment to enhance the result of recommendation is conducted to present a location-based service recommendation model (LBSRM) and design a prototype system to simulate and measure the validity of LBSRM.
Financial Analysts JournalFuzzy Neural Systems for Stock Selection
82 Citations1992Fu‐Lung Wong, P.Z. Wang +2 more
Artificial intelligence tools such as expert systems and artificial neural systems have been heralded as new approaches to financial decision-making but suffer from the inability to explain the steps by which they reach decisions and their inability to incorporate rules into their structure.
Expert Systems with ApplicationsCombination of Web page recommender systems
78 Citations2009Murat Göksedef, Şule Gündüz-Öğüdücü
This paper investigates a hybrid recommender system, which combines the results of several recommender techniques based on Web usage mining, and suggests that the hybridRecommender system is better in predicting the next request of a Web user.
International Journal of Production EconomicsMCDM in a fuzzy setting: Investment projects assessment application
74 Citations2005L. Dimova, P. Sevastianov +1 more
The new method for generalization of aggregation schemes based on level-2 fuzzy sets mathematical tools is proposed and illustrated and the method for dealing with hierarchical structures of local criteria is presented.
Knowledge-Based SystemsMining associative classification rules with stock trading data – A GA-based method
71 Citations2010Ya-Wen Chang Chien, Yen‐Liang Chen
This study proposes a GA-based algorithm used to build an associative classifier that can discover trading rules from these numerical indicators and shows that the proposed approach is an effective classification technique with high prediction accuracy and is highly competitive when compared with the data distribution method.
Journal of Behavioral FinanceMoney Attitude Typology and Stock Investment
69 Citations2006Carmen Keller, Michael Siegrist
User Modeling and User-Adapted InteractionCase-studies on exploiting explicit customer requirements in recommender systems
67 Citations2008Markus Zanker, Markus Jessenitschnig
Results indicate that, especially for new users, explicit customer requirements are a useful source of feedback for personalization and hybrid configurations of collaborative and knowledge-based techniques achieve best results.
Expert Systems with ApplicationsAn approach to expert recommendation based on fuzzy linguistic method and fuzzy text classification in knowledge management systems
59 Citations2011Ming Li, Lu Liu +1 more
An approach to expert recommendation is proposed to assist the user to find the required experts in the knowledge management system and the experimental results show the proposed approach is feasible and effective.
Expert Systems with ApplicationsConstructing investment strategy portfolios by combination genetic algorithms
55 Citations2008Jiah-Shing Chen, Jia-Li Hou +2 more
Experimental results show that the idea of investment strategy portfolios is feasible and the combination genetic algorithm is effective on the investment strategy portfolio problem.
Knowledge-Based SystemsAn integration method combining Rough Set Theory with formal concept analysis for personal investment portfolios
55 Citations2010Jhieh-Yu Shyng, How‐Ming Shieh +1 more
This study proposes a pruning process to select suitable rules by setting up a threshold on the support object of decision rules, to solve the problem of too many rules.
Information SciencesA hybrid approach to asset allocation with simultaneous consideration of suitability and optimality
46 Citations2010Pankaj Gupta, Mukesh Kumar Mehlawat +1 more
A hybrid approach that combines behavior survey, cluster analysis, analytical hierarchy process and fuzzy mathematical programming is used to develop mathematical models for simultaneous consideration of suitability and optimality in asset allocation.
ConstraintsPreference reasoning with soft constraints in constraint-based recommender systems
45 Citations2010Markus Zanker, Markus Jessenitschnig +1 more
This article formalizes the different variants of a constraint-based recommendation problem based on consistency and the empirical part compares the performance of different constraint- based recommendation mechanisms in offline experiments on historical data.
Accounting Organizations and SocietyIdentification through technical analysis: A study of charting and UK non-professional investors
43 Citations2008Philip Roscoe, Carole Howorth
Future Generation Computer SystemsSOLAR: Social Link Advanced Recommendation System
41 Citations2009Ángel García-Crespo, Ricardo Colomo‐Palacios +2 more
A framework for the association of semantic data to webpage links based on a specific domain ontology is proposed, additionally permitting the user to express his opinion regarding his emotions about the content of the link.
International Journal of Strategic Property ManagementA FUZZY DECISION‐MAKING APPROACH FOR PORTFOLIO MANAGEMENT WITH DIRECT REAL ESTATE INVESTMENT
37 Citations2009Eddie C.M. Hui, Otto Muk Fai Lau +1 more
The findings suggest that the fuzzy tactical asset allocation (FTAA Flexible Model), with the inclusion of expert judgments which contain information usually not found in historical data, is able to produce a portfolio just as efficient as traditional asset allocation models while minimizing the potential issues due to imprecision and vagueness of information.
European Journal of Operational ResearchUsing FSBT technique with Rough Set Theory for personal investment portfolio analysis
35 Citations2009Jhieh-Yu Shyng, How‐Ming Shieh +2 more
This study proposes a novel Forward Search and Backward Trace (FSBT) technique based on Rough Set Theory to improve data analysis and extend the scope of observations made from sample data to solve personal investment portfolio problems.
Knowledge-Based SystemsMISMIS – A comprehensive decision support system for stock market investment
34 Citations2010Vincent Cho
It is found that historical HSI, Dow Jones Index, property price index, retailing sales figure, prime lending rate, and consumer price index in Hong Kong are essential factors affecting the performance of the trading of HSI’s future option.
International Journal of Electronic CommerceIntroduction to the Special Issue: Recommender Systems
33 Citations2006Francesco Ricci⋆, Hannes Werthner
The author presents an introduction to the Special Issue: Recommender Systems, a meta-modelling system that automates the very labor-intensive and therefore time-heavy and expensive process of manually cataloging and cataloging webinar sessions.
Journal of Applied Mathematics and Decision SciencesA New Decision-Making Method for Stock Portfolio Selection Based on Computing with Linguistic Assessment
28 Citations2009Chen‐Tung Arthur Chen, Wei-Zhan Hung
According to the linguistic evaluations of experts, the linguistic TOPSIS and linguistic ELECTRE methods are combined to present a new decision-making method for dealing with stock selection problems in this paper.
Information SciencesApplication of fuzzy calculations for improving portfolio matrices
26 Citations2010Sepehr Ghazinoory, A. Esmail Zadeh +1 more
This paper considers the limitations and problems of classic portfolio analysis approach and resolves these problems by using fuzzy set theory, and develops and implements a strategic decision making model using fuzzy triangular numbers.
LWTComparison of Kinetics, Neural Network and Fuzzy Logic in Modelling Texture Changes of Dry Peas in Long Time Cooking
22 Citations1998G. Xie, R. Xiong +1 more
The neural network model consistently produced the best fit to the experimental data, and the first-order-reaction kinetic model the worst, compared to the traditional kinetic models, which are more flexible.
Advances In ManagementBEHAVIORAL FINANCE vs TRADITIONAL FINANCE
18 Citations2009Nik Maheran Nik Muhammad
International Journal of Decision Support System TechnologyPopulating Knowledge Based Decision Support Systems
12 Citations2010Ignacio García-Manotas, Eduardo Lupiani +2 more
A technique for populating knowledge bases from semi-structured text which take advantage of the semantic underpinnings provided by ontologies and has been tested and evaluated in the financial domain.
Intelligent systems in accounting, finance and management/Intelligent systems in accounting, finance & managementInvestment portfolio balancing: application of a generic self‐organizing fuzzy neural network (GenSoFNN)
10 Citations2009Chai Quek, Kin‐Choong Yow +2 more
The GenSoFNN-based portfolio balancing system was evaluated with experiments conducted using 23 stocks from the New York Stock Exchange and NASDAQ, and the results showed an average profit return of 65.66%.
Knowledge-Based SystemsA neural fuzzy framework for system mapping applications
9 Citations2010Jie Liu, Wilson Wang +2 more
A novel neural fuzzy mapping framework is developed to convert linear systems and a class of nonlinear systems from the crisp-domain to a NF representation that facilitates the investigation in linguistic terms into the system operations, whereas the system performance can be further improved by properly incorporating expertise knowledge or by online/offline training via this NF structure.
Financial Analysts JournalApplying Expert Systems to Investment
5 Citations1988Jerome L. Valentine
An expert system can indicate all possible solutions to the goal set for it, describe how those solutions were found and give a quantitative measure of how likely it is that each solution is true.
USE OF SEMANTIC SIMILARITY AND WEB USAGE MINING TO ALLEVIATE THE DRAWBACKS OF USER-BASED COLLABORATIVE FILTERING RECOMMENDER SYSTEMS USE
5 Citations2010Reza Samizadeh, B Ghelichkhani
Results of the implementation of this hybrid web recommender system indicates that this combined approach yields better results in both accuracy and coverage metrics and also has a considerable capability to handle collaborative filteringRecommender system for its typical shortcomings.
Zenodo (CERN European Organization for Nuclear Research)Portfolio Management: A Fuzzy Set Based Approach To Monitoring Size To Maximize Return And Minimize Risk
3 Citations2009Margaret F. Shipley
A proactive fuzzy set-based model for reacting to the risk inherent in investment activities relative to a complete view of portfolio management and an extension is given to the fuzzy controller that evaluates potential financial loss before adjusting the portfolio.
Journal of Mathematics ResearchRisk Curve and Bifuzzy Portfolio Selection
3 Citations2009Limei Yan
In order to solve the portfolio problem when security returns are bifuzzy variables, a new definition of risk is proposed, then one type of portfolio selection based on expected value and risk is provided according to bifBuzzy theory and a hybrid intelligent algorithm is designed.
Lecture notes in computer scienceFuzzy Genetic System for Modelling Investment Portfolio
3 Citations2006Rahib H. Abiyev, Mustafa Menekay
The Journal of Portfolio ManagementAn Important Announcement
3 Citations1998Peter L. Bernstein
This competition will cover the sequence of four issues begmmng with Fall 1998 and ending with Summer 1999, and the article receiving the most votes will win the Best Article award, and the three next in order to win Outstanding Article awards.
Contemporary Management ResearchApplication of XCSR Model for Dynamic Portfolio Selection
1 Citations2009Mei‐Chih Chen, Chang-Li Lin +1 more
The empirical results revealed that this study's XCSR model yields return on investment is significantly better than the Buy and Hold model and the proposed model can help investors obtain relatively optimal returns.
…