Construction and Simulation of the Market Risk Early-Warning Model Based on Deep Learning Methods

• Published in: Scientific programming Vol. 2022; pp. 1 - 8
• Main Authors: Lei, Yuchen, Li, Yinghui
• Format: Journal Article
• Language: English
• Published: New York Hindawi 24.03.2022; John Wiley & Sons, Inc
• Subjects: Accuracy; Algorithms; Confidence intervals; Correlation analysis; Deep learning; Economic forecasting; Equity financing; Finance; Machine learning; Model accuracy; Neural networks; Optimization; Performance evaluation; Profit margins; Real estate; Risk; Support vector machines; Warning; China
• ISSN: 1058-9244; 1875-919X; 1875-919X
• DOI: 10.1155/2022/4733220

To address the problem of low efficiency of existing forecasting models for market risk warning, a market risk early-warning model based on improved LSTM is suggested utilizing the whale optimization algorithm (WOA) to optimize the number of hidden layer neurons and time step parameters of long short-term memory. The proposed market risk early-warning model is validated by using 40 real estate companies as the research subjects and 20 relevant variables such as gross operating income, net profit asset growth rate, and total asset growth rate as indicators. The results demonstrate that the proposed model’s prediction accuracy for market risk is greater than 96% and that when compared to the standard CNN and LSTM models, the suggested model’s prediction accuracy for corporate finance from 2012 to 2019 is increased by 14% and 12%, respectively, and the prediction accuracy for corporate finance in 2020 is improved by 22% and 7%, respectively, which has certain practical application value and superiority.