Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 6, Issue 2


Published
on

November 22, 2021


Pages

171-180


DOI

Article

Differential equation model of financial market stability based on Internet big data

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Authors

Hongling Chen Affiliation:
School of Finance and Accounting, Henan University of Animal Husbandry and Economy, Zhengzhou Henan, 450044, China
, Bahjat Fakieh Affiliation:
Department of Information System, Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah, Saudi Arabia
and Bishr Muhamed Muwafak Affiliation:
Department of Accounting and Finance, Faculty of Administrative Sciences, Applied Science University, Al Eker, Kingdom of Bahrain


Abstract

In the context of Internet big data, the market characteristics of the financial market can be used to feed back its stability with the help of differential equation models. China's financial market is roughly divided into three main markets: stocks, currency and foreign exchange. The interaction of the three has promoted the development of the financial market. With this as a background, the paper aims at these three financial markets and selects relevant indicators that can reflect the indications of the financial market to construct differential equations to analyse the relationship between the three. The paper uses the nonlinear characteristics of ordinary differential equations and related algorithms to solve the three types of market models. It uses an example to demonstrate that the differential equation model proposed in this paper can feed back the evolutionary characteristics of the three, and this model can help investors produce more correct investment decisions.


Keywords

financial market, stability differential equation, internet big data, composite index, 47J35


Citation

Chen, H., Fakieh, B., & Muwafak, B. M. (2021). Differential equation model of financial market stability based on internet big data. Applied Mathematics and Nonlinear Sciences, 6(2), 171–180. https://doi.org/10.2478/amns.2021.2.00092

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