WSEAS Transactions on Computer Research
Print ISSN: 1991-8755, E-ISSN: 2415-1521
Volume 12, 2024
The Construction of an Investment Risk Measurement Model and Risk Avoidance Strategy under the Financialization Mode of Chinese Artworks
Authors: ,
Abstract: Along with the continuous development of artwork in the investment market, as a special investor asset, it plays an important role in dispersing the investment risk and stabilizing the investment income for the investors, and therefore it has become an important way of investor’s asset portfolio allocation. The financialization mode of Chinese artwork has become an important research direction in recent years, and the investment risk under this mode is also a key factor that needs to be seriously considered. Based on this, this paper explores the analysis and prediction of the results such as the return of China’s art index based on the GARCH model, and further explores the key factors affecting its risk, accordingly. It is verified that the GARCH model at the 5% confidence level plays a role in predicting the maximum loss of investing in Chinese artworks. At the same time, the corresponding optimization suggestions are put forward in terms of choosing formal purchasing channels, learning relevant appraisal knowledge, improving relevant laws, disclosing information on art securitization transactions, and using securitization and other channels. To be able to provide certain references for the construction of the investment risk metrics model and the avoidance of the risk under the mode of China’s financialization of artworks.
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Keywords: Art market, Art financialization, Investment risk, Metric model, Risk avoidance, Works of art, investment yields, price indices
Pages: 384-390
DOI: 10.37394/232018.2024.12.38