Clustering Analysis in the Evaluation of Securities Investment Funds

Clustering analysis as one of the key components of data mining has been widely applied. The purpose of this paper is to apply clustering algorithm to classify and evaluate the securities investment funds. This paper established a system of fund evaluation index by researching the indexes which are influenced funds' performance and drawing on domestic and foreign mature funds evaluation theory, and then made use of the data mining function of EXCEL to set up a clustering analysis model. Finally, this paper used 40 equity funds as sample data to conduct empirical research. The cluster results are helpful to evaluate funds' performance and meaningful to guide the rational investment.