• Journal of Korean Society of Industrial and Systems Engineering
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• v.45 no.3
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• pp.123-130
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• 2022

Pair trading is a statistical arbitrage investment strategy. Traditionally, cointegration has been utilized in the pair exploring step to discover a pair with a similar price movement. Recently, the clustering analysis has attracted many researchers' attention, replacing the cointegration method. This study tests a clustering-driven pair trading investment strategy in the Korean stock market. If a pair detected through clustering has a large spread during the spread exploring period, the pair is included in the portfolio for backtesting. The profitability of the clustering-driven pair trading strategies is investigated based on various profitability measures such as the distribution of returns, cumulative returns, profitability by period, and sensitivity analysis on different parameters. The backtesting results show that the pair trading investment strategy is valid in the Korean stock market. More interestingly, the clustering-driven portfolio investments show higher performance compared to benchmarks. Note that the hierarchical clustering shows the best portfolio performance.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.4
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• pp.239-244
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• 2014

The conventional clustering approaches are mostly based on minimizing total dissimilarity of input and output. However, the clustering approach may not be helpful in some cases of clustering decision making units (DMUs) with production feature converting multiple inputs into multiple outputs because it does not care converting functions. Data envelopment analysis (DEA) has been widely applied for efficiency estimation of such DMUs since it has non-parametric characteristics. We propose a new clustering method to identify groups of DMUs that are similar in terms of their input-output profiles. A real world example is given to explain the use and effectiveness of the proposed method. And we calculate similarity value between its result and the result of a conventional clustering method applied to the example. After the efficiency value was added to input of K-means algorithm, we calculate new similarity value and compare it with the previous one.

• Knowledge Management Research
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• v.17 no.3
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• pp.65-91
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• 2016

Although the success of industrial clusters largely depends on whether clustering firms can achieve economic performance, there has been less attention on investigating factors and conditions contributing to the performance enhancement for clustering small and medium-sized enterprises (SMEs). Along this vein, we adopt the theories of social capital and organizational learning as those success factors for clustering SMEs. This study thus aims at examining what effect social capital accrued in the relationships among actors within clusters has on firm performance of clustering SMEs and what role organizational learning plays in the linkage between social capital and firm performance. For the empirical analysis, we operationalized the variables and their measures to develop questionnaires through the theoretical reviews on literatures. As a sample of 227 clustering SMEs, our collected data was analyzed by hierarchical regression analysis. The results confirmed that a high level of social capital, represented by network, trust, and norm, has positive effect on firm performance of clustering SMEs. We also found that clustering firms presenting high organizational learning, represented by absorptive and transformative capability, achieve better performance than those placing less value on organizational learning. Furthermore the significant relationship between social capital and firm performance is mediated partially through organizational learning. These findings imply not only that the territorial agglomeration of industrial cluster does not guarantee the performance creation of clustering SMEs but that they need to develop social capital among various actors within clusters, facilitating their knowledge diffusion. In order to absorb and mobilize the shared knowledge and information into strategic resources, the firms should improve their capability associated with organizational learning. These expand our understanding on the importance of social capital and organizational learning for the performance enhancement of clustering firms. Differentiating from major studies addressing benefits and advantages of industrial cluster, this study based on the perspective of firm-internal business process contributes to the literature advancement. Strategic and policy implications of this study are discussed in detail.

• Journal of the Architectural Institute of Korea Planning & Design
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• v.34 no.10
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• pp.131-142
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• 2018

Being dealt in Alfred Weber's Theory of the location of Industries, a lot of economic benefits can be obtained through aggregation and clustering of industrial facilities, which derived to the development of industrial complexes in Korea. However, with the IMF economic crisis as well as various institutional changes, the framework of aggregation and clustering of industries is broken, which led to individual developments that took place without any consideration of surrounding industries. For reformation of these condition of industrial complexes, national government-led regeneration projects are being carried out currently. However, national government-led projects mainly focus on profitable projects such as officetel and hotel that are irrelevant to exist composition of industrial complexes which is usually manufacturing base industries and are unable to solve the fundamental problems of industrial complexes. Thus, a necessity of industry clustering is deduced through case analysis of actual private-led manufacturing industry cluster with governance and analysis of benefits on financial, spatial and environmental aspects. In addition, implications on the necessity follow base on factorial analysis on the benefit of clustering development than individual development as well as analysis on the measures taken for successful clustering.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.1
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• pp.99-109
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• 2007

To realize process-driven management, so many companies have been launching business process managementsystems. Business process is collection of standardized and structured tasks inducing value creation of acompany. Moreover, it is recognized as one of significant intangible business assets to achieve competitiveadvantages. This research introduces a novel approach of workflow process analysis, which has more and moresignificance as process-aware information systems are spreading widely into a lot of companies, In this paper, amethodology of workflow clustering based on process similarity has been proposed. The purpose of workflowclustering is to analyze accumulated process definitions in order to assist design of new processes andimprovement of existing ones. The proposed methodology exploits measures of structural similarity of workflowprocesses.The methodology has been experimented with synthetic process models for illustrating the implicationofworkflow clustering.

• Journal of IKEEE
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• v.4 no.2 s.7
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• pp.233-240
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• 2000

This paper presents fuzzy clustering and wavelet transform analysis based technique for the industrial hourly load forecasting fur the purpose of peak demand control. Firstly, one year of historical load data were sorted and clustered into several groups using fuzzy clustering and then wavelet transform is adopted using the Biorthogonal mother wavelet in order to forecast the peak load of one hour ahead. The 5-level decomposition of the daily industrial load curve is implemented to consider the weather sensitive component of loads effectively. The wavelet coefficients associated with certain frequency and time localization is adjusted using the conventional multiple regression method and the components are reconstructed to predict the final loads through a five-scale synthesis technique. The outcome of the study clearly indicates that the proposed composite model of fuzzy clustering and wavelet transform approach can be used as an attractive and effective means for the industrial hourly peak load forecasting.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.11
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• pp.758-764
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• 2018

Digital documents such as patents, scholarly papers and research reports have author keywords which summarize the topics of documents. Different documents are likely to describe the same topic if they share the same keywords. Document clustering aims at clustering documents to similar topics with an unsupervised learning method. However, it is difficult to apply to a large amount of documents event though the document clustering is utilized to in various data analysis due to computational complexity. In this case, we can cluster and connect massive documents using keywords efficiently. Existing bottom-up hierarchical clustering requires huge computation and time complexity for clustering a large number of keywords. This paper proposes an inverted index based bottom-up clustering for keywords and analyzes the results of clustering with massive keywords extracted from scholarly papers and research reports.

• KEPCO Journal on Electric Power and Energy
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• v.2 no.1
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• pp.61-69
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• 2016

Understanding load patterns and customer classification is a basic step in analyzing the behavior of electricity consumers. To achieve that, there have been many researches about clustering customers' daily load data. Nowadays, the deployment of advanced metering infrastructure (AMI) and big-data technologies make it easier to study customers' load data. In this paper, we study load clustering from the view point of yearly and daily load pattern. We compare four clustering methods; K-means clustering, hierarchical clustering (average & Ward's method) and DBSCAN (Density-Based Spatial Clustering of Applications with Noise). We also discuss the relationship between clustering results and Korean Standard Industrial Classification that is one of possible labels for customers' load data. We find that hierarchical clustering with Ward's method is suitable for clustering load data and KSIC can be well characterized by daily load pattern, but not quite well by yearly load pattern.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.3
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• pp.89-98
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• 2014

Platform-based product family design is recognized as an effective method to satisfy the mass customization which is a current market trend. In order to design platform-based product family successfully, it is the key work to define a good product platform, which is to identify the common modules that will be shared among the product family. In this paper the clustering analysis using dendrogram is proposed to capture the common modules of the platform. The clustering variables regarding both marketing and engineering sides are derived from the view point of top-down product development. A case study of a cordless drill/drive product family is presented to illustrate the feasibility and validity of the overall procedure developed in this research.

• IE interfaces
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• v.24 no.4
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• pp.447-456
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• 2011

Identifying the major moving patterns of shoppers' movements in the selling floor has been a longstanding issue in the retailing industry. With the advent of RFID technology, it has been easier to collect the moving data for a individual shopper's movement. Most of the previous studies used the traditional clustering technique to identify the major moving pattern of customers. However, in using clustering technique, due to the spatial constraint (aisle layout or other physical obstructions in the store), standard clustering methods are not feasible for moving data like shopping path should be adjusted for the analysis in advance, which is time-consuming and causes data distortion. To alleviate this problems, we propose a new approach to spatial pattern clustering based on longest common subsequence (LCSS). Experimental results using the real data obtained from a grocery in Seoul show that the proposed method performs well in finding the hot spot and dead spot as well as in finding the major path patterns of customer movements.