Abstract
There are several studies about extended classification system (XCS) in past years. XCS model can dynamically learn and adapt to the change of environments for maximizing the desired goals. This paper conducts simulation to apply XCS to global asset allocation in the country-specific exchanged traded funds (ETFs). Since international stock price trend is influenced by unknown and unpredictable surroundings, using XCS to model the fluctuations on global financial market allows for the discovery of the patterns of the future trends. As such, the benefits of international asset diversification can be achieved in a tax-efficient way with country-specific ETFs at a low transaction cost with minimized tracking error. These empirical results indicate that XCS is capable of evolving over time, and thus XCS can provide a good indicator for future global asset allocation decision-making aiming at maximized profit.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
