Research on Quantitative Investment of the CSI 300 Stocks Based on Monte Carlo Algorithm

Abstract

With the development of science and technology, quantitative investment was involved as the three main methods of stock investment together with fundamental analysis and technical analysis. In this paper, a quantitative investment model is proposed to automatically and accurately capture the real-time updated stock data of CSI 300 stocks. Its specific logic is that the K-means clustering model based on factor analysis is used to screen out several good stocks and then automatically calculate the optimal portfolio mode for investors. In addition, using this model, we conducted an empirical study on the Shanghai and Shenzhen 300 stock data from 2018 to 2020. It is concluded that the top ten stocks during this period are ZTE,