Stock Indexes Community Identification Using BAT-Modified Optimization Algorithm

Stock price accelerates interest and preference of the young generation to explore the stock market with elicit interest. An autopilot system is needed where users choose beneficial stocks of their choice without paying attention to the manual inspection or implication. This study aims to form highly correlated stock communities based on fluctuations in stock price which will be helpful in the prediction and decision-making of users about their expenditure in the stock market. For the enormous volume of stock price time series data, the opted data representation method is the network which is generated with the help of a data statistical correlation test. Another research challenge was to detect the community in an optimized manner due to complex stock networks. For the same, BAT optimization algorithm and a proposed BAT-modified (BAT-M) algorithm are applied for complex stock network community formation. The better community formation results showcase that BAT-M gives better performance in comparison to the standard BAT algorithm on various performance evaluation factors.