Multi-Process Analysis and Portfolio Optimization Based on Quantum Mechanics (QM) Under Risk Management in ASEAN Exchanges: A Case Study of Answering to the E-Commerce and E-Business Direction

Multi-Process Analysis and Portfolio Optimization Based on Quantum Mechanics (QM) Under Risk Management in ASEAN Exchanges: A Case Study of Answering to the E-Commerce and E-Business Direction

Chukiat Chaiboonsri (Chiang Mai University, Thailand) and Satawat Wannapan (Chiang Mai University, Thailand)
DOI: 10.4018/978-1-7998-4984-1.ch003
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Abstract

This research attempts to classify, predict, and manage the financial time-series trends of the large stock prices of significant companies in the development of e-commerce and e-business in the ASEAN countries. Moreover, the Markowitz portfolio optimization analysis based on quantum mechanics was utilized to find out the direction of e-commerce and e-business in the future. Data collection for this study consists of Maybank, PPB Group Berhad, Golden Agri-Resource, SingTel, and Global Logistic Properties. And the stock prices of those companies were carried out to this study from 2004 to 2018 by daily data. Interestingly, the empirical results would provide a possible solution and efficiently suggest a beneficial for the development of both e-commerce and e-business in the ASEAN countries. The commerce and business based on electronics in ASEAN, especially agribusiness, energy business, and telecommunication business, still play a major important role in the economy of ASEAN countries.
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Background

Interestingly, the research purpose aims to solve the question is that who is an important player in E-commerce and E-business in ASEAN countries. By observing from the modified log-returns of those stock prices during 2014 to 2018, the companies in ASEAN were chosen to be good examples for this study. For financial sector, the company, Maybank, plays an important role in the financial sector in Malaysia. The company is implied as a Malaysian universal bank, with key operating “home markets” of Malaysia. Additionally, the network is internationally located in the major countries in ASEAN. The electronic business activities are the crucial role for the company since the 2018 Brand Finance Banking 500 Brand Value Report issued by global brand valuation and strategy consulting firm.

Key Terms in this Chapter

Modern Portfolio Theory (MPT): The Mean-Variance analysis is to manage a Portfolio of assets by depending on the efficiency frontier concept.

E-Business: It is some kind of activity to run the business process mainly on the internet.

Bayesian Inference: It is some kind of statistics branch as a based stand on by Bayes theorem and this statistics method was based on the subjective or prior distribution mixed with a likelihood function of data by computed for posterior distribution.

Quantum Mechanics: It is a modern physics to describe the properties of nature especially the smallest of atom behavior such as the movement of the electron was described by the wave function.

ASEAN Exchange: The stocks market consist of six stock exchange such as the stock exchange of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam aims to promote the growth of the ASEAN capital market.

E-Commerce: It is some kind of activity to run the Commercial transactions on mainly the internet.

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