• Journal of the Korea Institute of Information and Communication Engineering
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• v.24 no.6
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• pp.687-699
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• 2020

The government-led top-down development approach for weapons system faces the problem of technological obsolescence now that technology has rapidly grown. As a result, the government has gradually expanded the corporate-led bottom-up project implementation method to the defense industry. The key success factor of the bottom-up project implementation is the ability of defense companies to plan their technologies. This paper presented a method of analyzing patent data through data mining technique so that domestic defense companies can utilize it for technology planning activities. The main content is to propose corporate selection techniques corresponding to the defense communication-electronics sectors and conduct principal component analysis and cluster analysis for the International Patent Classification. Through this, the technology was classified into four groups based on the patents of nine companies and the representative enterprises of each group were derived.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.12 no.4
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• pp.772-780
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• 2008

K-means is one of the simplest unsupervised learning algorithms that solve the clustering problem. However K-means suffers the basic shortcoming: the number of clusters k has to be known in advance. In this paper, we propose extensions of X-means, which can estimate the number of clusters using Bayesian information criterion(BIC). We introduce two different versions of algorithm: modified X-means(MX-means) and generalized X-means(GX-means), which employ one full covariance matrix for one cluster and so can estimate the number of clusters efficiently without severe over-fitting which X-means suffers due to its spherical cluster assumption. The algorithms start with one cluster and try to split a cluster iteratively to maximize the BIC score. The former uses K-means algorithm to find a set of optimal clusters with current k, which makes it simple and fast. However it generates wrongly estimated centers when the clusters are overlapped. The latter uses EM algorithm to estimate the parameters and generates more stable clusters even when the clusters are overlapped. Experiments with synthetic data show that the purposed methods can provide a robust estimate of the number of clusters and cluster parameters compared to other existing top-down algorithms.

• Journal of Intelligence and Information Systems
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• v.27 no.1
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• pp.65-82
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• 2021

Stock market investors are generally split into foreign investors, institutional investors, and individual investors. Compared to individual investor groups, professional investor groups such as foreign investors have an advantage in information and financial power and, as a result, foreign investors are known to show good investment performance among market participants. The purpose of this study is to propose an investment strategy that combines investor-specific transaction information and machine learning, and to analyze the portfolio investment performance of the proposed model using actual stock price and investor-specific transaction data. The Korea Exchange offers daily information on the volume of purchase and sale of each investor to securities firms. We developed a data collection program in C# programming language using an API provided by Daishin Securities Cybosplus, and collected 151 out of 200 KOSPI stocks with daily opening price, closing price and investor-specific net purchase data from January 2, 2007 to July 31, 2017. The self-organizing map model is an artificial neural network that performs clustering by unsupervised learning and has been introduced by Teuvo Kohonen since 1984. We implement competition among intra-surface artificial neurons, and all connections are non-recursive artificial neural networks that go from bottom to top. It can also be expanded to multiple layers, although many fault layers are commonly used. Linear functions are used by active functions of artificial nerve cells, and learning rules use Instar rules as well as general competitive learning. The core of the backpropagation model is the model that performs classification by supervised learning as an artificial neural network. We grouped and transformed investor-specific transaction volume data to learn backpropagation models through the self-organizing map model of artificial neural networks. As a result of the estimation of verification data through training, the portfolios were rebalanced monthly. For performance analysis, a passive portfolio was designated and the KOSPI 200 and KOSPI index returns for proxies on market returns were also obtained. Performance analysis was conducted using the equally-weighted portfolio return, compound interest rate, annual return, Maximum Draw Down, standard deviation, and Sharpe Ratio. Buy and hold returns of the top 10 market capitalization stocks are designated as a benchmark. Buy and hold strategy is the best strategy under the efficient market hypothesis. The prediction rate of learning data using backpropagation model was significantly high at 96.61%, while the prediction rate of verification data was also relatively high in the results of the 57.1% verification data. The performance evaluation of self-organizing map grouping can be determined as a result of a backpropagation model. This is because if the grouping results of the self-organizing map model had been poor, the learning results of the backpropagation model would have been poor. In this way, the performance assessment of machine learning is judged to be better learned than previous studies. Our portfolio doubled the return on the benchmark and performed better than the market returns on the KOSPI and KOSPI 200 indexes. In contrast to the benchmark, the MDD and standard deviation for portfolio risk indicators also showed better results. The Sharpe Ratio performed higher than benchmarks and stock market indexes. Through this, we presented the direction of portfolio composition program using machine learning and investor-specific transaction information and showed that it can be used to develop programs for real stock investment. The return is the result of monthly portfolio composition and asset rebalancing to the same proportion. Better outcomes are predicted when forming a monthly portfolio if the system is enforced by rebalancing the suggested stocks continuously without selling and re-buying it. Therefore, real transactions appear to be relevant.