Abstract
Abstract In the context of Internet big data, the market characteristics of the financial market can be used to feed back its stability with the help of differential equation models. China's financial market is roughly divided into three main markets: stocks, currency and foreign exchange. The interaction of the three has promoted the development of the financial market. With this as a background, the paper aims at these three financial markets and selects relevant indicators that can reflect the indications of the financial market to construct differential equations to analyse the relationship between the three. The paper uses the nonlinear characteristics of ordinary differential equations and related algorithms to solve the three types of market models. It uses an example to demonstrate that the differential equation model proposed in this paper can feed back the evolutionary characteristics of the three, and this model can help investors produce more correct investment decisions.
Highlights
The close connections and interactions among financial sub-markets have affected the development, changes and operation laws of each market, forming an overall linkage development trend
When the interest rate is lowered, a large amount of money flows into the stock market from the money market, which enhances the attractiveness of the stock market
We propose a constrained nonlinear evolution model
Summary
The close connections and interactions among financial sub-markets have affected the development, changes and operation laws of each market, forming an overall linkage development trend. Existing research results fully demonstrate that the three markets of the stock market, foreign exchange market and currency market are significant When a market fluctuates, investors can use the nonlinear evolution structure to anticipate changes in the other two markets to avoid risk. This shows that it is important to study the nonlinear evolution of the three markets. In response to the above problems, this article selects 12 important decision-making indicators from 19 important indicators in the three markets through causality testing On this basis, we have established a comprehensive indicator that can fully reflect the changes in the three markets [2]. The established nonlinear evolution model with constraints better describes the nonlinear evolution structure of the three markets and the mutual influence between the three markets
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