Security market is not only a barometer in national economy, but also one of the most important investment tools for each person and financing means for enterprises. If we can make some prediction and analysis ahead of time, this would make significantly theory contribution and real meaning for no matter who like private investor, enterprises and the government policy maker.
Data mining aims to get previously unknown and potentially useful knowledge from a large amount of data to offer decision support. With the development of the security market, lots of history exchange data has been stored in database. It attracts more and more attention that how to use these history exchange data to discover the rules of the security market.
This paper focuses on the security prediction analysis, aims to get the hidden knowledge of the security data to assist investors to make decisions by data mining. The contents of the study are as follows:
(1)Association rules mining
This paper used Apriori algorithm mining association rules among stocks. The association rules mined in this paper includes stock association rules, stock association rules with time constraints and association rules of time series of stock transactions.
(2)Outlier mining
This paper mined the outlier of the stock exchange time series database, the result indicated that the local trend of stock would repeat.
(3)Stock price tendency prediction
In this paper, we converted the stock price time series into a variable rate of change in prices of the time series analysis, and predicted stock price tendency by classification. This paper used k-nearest neighbor algorithm (KNN) to predict stock price tendency.
(4)Security quotes prediction system
This paper combined the security prediction analysis and the data mining, according to the actual demand for stock investors, designed and implemented a security quotes prediction system. This system could collect, clean and analyze security exchange data, then output the stock association rules and the prediction of stock price tendency to assist investors to make investment decisions.
