ABSTRACT
Financial Ratios have been a major indicator for financial asset selection. It’s seen that the decision taken to construct a portfolio based on financial ratio indicators has been able to make better returns than the random asset allocation process in the portfolio. This research will show multiple classifications based on unsupervised machine learning processes to satisfactorily determine investable assets or securities for portfolio contribution. Our suggested portfolio would then be compared with a random portfolio for a specific time frame in order to determine portfolio return, Sharpe ratio, and portfolio performance.
Keywords: Means clustering, Neighbor algorithm, Current ratio, Portfolio optimization, and Markowitz theory.
Citation: Sami HM. (2021). Portfolio construction using financial ratio indicators and classification through machine learning, Int. J. Manag. Account. 3(4), 83-90. https://doi.org/10.34104/ijma.021.083090
