Optimistic Portfolio Investment Strategy for Colombo Stock Exchange using Deep Learning

Abstract

"Because of the influence of numerous internal and external causes, stock price movement tendencies are erratic in nature. For the traditional investor, this price volatility might present both opportunities and disadvantages. If stock prices rise, investors may benefit financially from it; conversely, if they fall, investors may suffer consequences. Investments involve a trade-off between risk and return, and portfolio optimisation is a strategy used to maximise this trade-off so that investors receive the most return on their capital. To reap the rewards of investment, it is vital to employ a proficient and productive approach for portfolio optimisation. If so, it is pointless to make the measures necessary to reduce the possibility of losing money on an investment. Taking an investment's potential returns into account is a useful strategy for portfolio optimisation. Since the optimisation is based on projected returns, an ex-ante 16 method for portfolio optimisation produces correct results. But when the projected returns are off, something goes wrong. This may cause the portfolio optimisation process to provide less-thanideal outcomes."