Stock Portfolio Analysis with Machine Learning Algorithmic Approach for Smart Investment Decisions
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Abstract
This study investigates the application of machine learning algorithms in stock portfolio analysis within the Indonesia Stock Exchange (IDX) and their impact on investment decision-making. By engaging 500 respondents from diverse market segments, including retail investors, institutional investors, and stock traders, the research provides a comprehensive overview of adopting and utilising machine learning technologies in the Indonesian stock market. The findings reveal that over 80% of respondents have integrated machine learning algorithms into their investment strategies. The algorithms are applied in various capacities: 45% of respondents use them for portfolio risk analysis, 30% for stock price prediction, and 25% for identifying new investment opportunities. Preferences for specific algorithms vary, with regression, Support Vector Machines (SVM), and Random Forest emerging as the most used tools. The integration of machine learning was strongly associated with improved investment decisions, as more than 60% of respondents reported enhanced portfolio performance and greater accuracy in their decision-making. These results highlight the transformative potential of machine learning algorithms in enabling more innovative and more adaptive investment strategies.
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