Pearson Correlation and Ordered Weighted Average Operator in The World Stock Exchange Market

Authors

  • Martha Flores-Sosa Universidad Autonoma de Occidente, Mexico
  • Ernesto León-Castro Faculty of Economics and Administrative Sciences, Universidad Católica de la Santísima Concepción, Concepción, Chile, Instituto Tecnologico de Sonora, Unidad Navojoa, Ramon Corona sin numero Colonia ITSON, Sonora, Mexico
  • Jose Merigo School of Information, Systems & Modelling, Faculty of Engineering and Information Technology, University of Technology Sydney, Australia
Keywords: Stock market, OWA operator, Pearson Coefficient, Financial development

Abstract

Due to the large number of transactions carried out in the stock market, it becomes of great importance for the financial development of a country. Analyzing the correlation between indices in the world helps us to know the way towards the variables that impact. This paper proposes the use of ordered weighted average (OWA) operators in combination with Pearson Coefficient to create a measure of correlation that can analyze a wide range of possible scenarios that go minimum to maximum. The new frameworks can add additional information to the process of correlation. The work presents an application in ten of the largest stock exchanges in the world. The results suggest a broad positive correlation between them that is reinforced in times of instability.

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Published
04.04.2024
Issue
ISSUE 1/2024
Section
Articles

How to Cite

Flores-Sosa, M., León-Castro, E. ., & Merigo, J. (2024). Pearson Correlation and Ordered Weighted Average Operator in The World Stock Exchange Market. Journal of Automation, Mobile Robotics and Intelligent Systems, 18(1), 43-55. https://doi.org/10.14313/JAMRIS/1-2024/5
How to Cite
Flores-Sosa, M., León-Castro, E. ., & Merigo, J. (2024). Pearson Correlation and Ordered Weighted Average Operator in The World Stock Exchange Market. Journal of Automation, Mobile Robotics and Intelligent Systems, 18(1), 43-55. https://doi.org/10.14313/JAMRIS/1-2024/5

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