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Stock portfolio structure of individual investors infers future trading behavior
- Source :
- PLoS ONE, PLoS ONE, Vol 9, Iss 7, p e103006 (2014)
- Publication Year :
- 2014
- Publisher :
- arXiv, 2014.
-
Abstract
- Although the understanding of and motivation behind individual trading behavior is an important puzzle in finance, little is known about the connection between an investor's portfolio structure and her trading behavior in practice. In this paper, we investigate the relation between what stocks investors hold, and what stocks they buy, and show that investors with similar portfolio structures to a great extent trade in a similar way. With data from the central register of shareholdings in Sweden, we model the market in a similarity network, by considering investors as nodes, connected with links representing portfolio similarity. From the network, we find groups of investors that not only identify different investment strategies, but also represent groups of individual investors trading in a similar way. These findings suggest that the stock portfolios of investors hold meaningful information, which could be used to earn a better understanding of stock market dynamics.<br />Comment: 9 pages, 4 figures, 1 table
- Subjects :
- Physics - Physics and Society
Computer and Information Sciences
Capital market line
Social Psychology
Financial economics
Investment strategy
Economics
Economic Models
Information Theory
lcsh:Medicine
Social Sciences
FOS: Physical sciences
Physics and Society (physics.soc-ph)
Statistical Mechanics
FOS: Economics and business
Sociology
Portfolio insurance
Fysik
Psychology
Attention
Investments
lcsh:Science
Stock (geology)
Behavior
Multidisciplinary
Physics
lcsh:R
Cognitive Psychology
Biology and Life Sciences
Models, Theoretical
Social Networks
Stock portfolio
Physical Sciences
Interdisciplinary Physics
Social Systems
Portfolio
Cognitive Science
lcsh:Q
Stock market
Business
Quantitative Finance - General Finance
General Finance (q-fin.GN)
Futures contract
Network Analysis
Research Article
Neuroscience
Subjects
Details
- Database :
- OpenAIRE
- Journal :
- PLoS ONE, PLoS ONE, Vol 9, Iss 7, p e103006 (2014)
- Accession number :
- edsair.doi.dedup.....f81a9d8508e4fc40fca825fcc3eafa22
- Full Text :
- https://doi.org/10.48550/arxiv.1402.2494