Beschreibung:
K-lines are among the most popular technical indicators, with considerable attention from investors and frequent use as a reference for investing. This paper provides a novel investing strategy based on a complex network that is built according to the correlations between K-lines. Its monthly return reaches as high as 5.4% for CSI 300 index constituents, significantly outperforming the market. We also found that i) based on a complex network, it takes only 10 to 20 stocks to construct a portfolio that can track the market and ii) portfolios constructed from edge nodes surpass those constructed from high-centrality nodes