An Application of Markov Chains in Optimizing Stock 
Portfolios in the Vietnamese Stock Market

Dinh Thi Kim Nhung

doi:https://doi.org/10.14445/22315373/IJMTT-V71I4P101

International Journal of Mathematics Trends and Technology

Research Article | Open Access | Download PDF

Volume 71 | Issue 4 | Year 2025 | Article Id. IJMTT-V71I4P101 | DOI : https://doi.org/10.14445/22315373/IJMTT-V71I4P101

An Application of Markov Chains in Optimizing Stock Portfolios in the Vietnamese Stock Market

Dinh Thi Kim Nhung

Received	Revised	Accepted	Published
24 Feb 2025	27 Mar 2025	12 Apr 2025	28 Apr 2025

Abstract

Markov chains are widely used as statistical models in various fields. In this paper, the author introduces the application of Markov chains to optimize stock portfolios. Markov chains are used to forecast the future returns of stocks. From this, investors can decide which stocks to invest in to optimize profits. Empirical analysis was conducted on some stock codes listed on the Vietnamese Stock Exchange.

Keywords

Markov chains, Investment portfolio, Return on investment.

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Citation :

Dinh Thi Kim Nhung, "An Application of Markov Chains in Optimizing Stock Portfolios in the Vietnamese Stock Market," International Journal of Mathematics Trends and Technology (IJMTT), vol. 71, no. 4, pp. 1-7, 2025. Crossref, https://doi.org/10.14445/22315373/IJMTT-V71I4P101