Optimizing investment strategies: Harnessing the power of K-line complex networks

Qiujun Lan, Haojie Li, Xianhua Mi and Chunyu Zhang

International Review of Economics & Finance, 2025, vol. 99, issue C

Abstract: The K-line is one of the most widely recognized technical indicators, garnering significant attention from investors and serving as a prevalent reference point for stock market investments. This paper provides an innovative investment strategy rooted in a complex network that is shaped by the correlations among K-lines. Its monthly return reaches an impressive 5.4 % for constituents of CSI 300 index (one of the most popular China Securities Indexes), significantly outperforming the market. The analysis also reveals i) utilizing the K-lines network, a portfolio tracking the market can be effectively assembled with ten to twenty selected stocks and ii) portfolios constructed from low-centrality nodes surpass those constructed from high-centrality nodes. This paper provides a good solution to the costly management of portfolio construction.

Keywords: K-lines; Multivariate correlation; Complex network; TMFG; Portfolio (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105905602500187X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:99:y:2025:i:c:s105905602500187x

DOI: 10.1016/j.iref.2025.104024

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().