Neutrosophic Soft Set for Forecasting Indonesian Bond Yields

Qonita Qurratu Aini, Imam Mukhlash*, Kistosil Fahim, Jasmir, Fatia Fatimah

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Bonds are tradable investment instruments that offer yields, representing the promised return on investment. Unlike fixed-interest bonds, bond yields typically fluctuate, so accurate yield predictions are crucial for investors. These fluctuations may include increase, decrease, and steady yield values, aligning well with the principles of the neutrosophic soft set. In this study, we apply the neutrosophic soft set theory to predict Indonesian bond yields in a multi-attribute time series framework. We consider closing yield, opening yield, and daily amplitude as predictor variables. We achieve shallow low prediction errors through experiments with varied training data ranges and n-order variations. We discover that the lowest values for Mean Absolute Error (MAE), Mean Absolute Percentage Error (MAPE), and Root Mean Square Error (RMSE) are 0.0436, 0.6462%, and 0.0514, respectively. These errors are achieve when n=13, with a two-year train data length. These results underscore the efficacy of the neutrosophic soft set in accurately predicting the closing yield of Indonesian bonds.

Original languageEnglish
Title of host publicationIntelligent and Fuzzy Systems - Intelligent Industrial Informatics and Efficient Networks Proceedings of the INFUS 2024 Conference
EditorsCengiz Kahraman, Sezi Cevik Onar, Selcuk Cebi, Basar Oztaysi, Irem Ucal Sari, A. Cagrı Tolga
PublisherSpringer Science and Business Media Deutschland GmbH
Pages690-698
Number of pages9
ISBN (Print)9783031671913
DOIs
Publication statusPublished - 2024
EventInternational Conference on Intelligent and Fuzzy Systems, INFUS 2024 - Canakkale, Turkey
Duration: 16 Jul 202418 Jul 2024

Publication series

NameLecture Notes in Networks and Systems
Volume1090 LNNS
ISSN (Print)2367-3370
ISSN (Electronic)2367-3389

Conference

ConferenceInternational Conference on Intelligent and Fuzzy Systems, INFUS 2024
Country/TerritoryTurkey
CityCanakkale
Period16/07/2418/07/24

Keywords

  • Fuzzy logic
  • Multi-attribute forecasting
  • Neutrosophic soft set
  • Yield

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