Application of Deep Learning Model in the Avoidance of Investment Risk of Multinational Enterprises

Abstract

With the continuous improvement and development of the socialist market economic system, China's economic development has full momentum, but the domestic market is no longer sufficient to meet the needs of enterprise development. China has always focused on peaceful diplomacy, and the world market has a strong demand for Chinese products. This work aims to improve the accuracy of exchange rate forecasting. The risk factors that may be encountered in the investment process of multinational enterprises can be effectively avoided. Combining the advantages of Long Short-Term Memory (LSTM) and Convolutional Neural Network (CNN), the LSTM-CNN (Long Short-Term Memory-Convolutional Neural Network) model is proposed to predict the volatility trend of stocks. Firstly, the investment risk of multinational enterprises is analyzed, and, secondly, the principles of the used CNN and LSTM are expounded. Finally, the performance of the proposed model is verified by setting experiments. The experimental results demonstrate that when predicting the 10 selected stocks, the proposed LSTM-CNN model has the highest accuracy in predicting the volatility of stocks, with an average accuracy of 60.1%, while the average accuracy of the rest of the models is all below 60%. It can be found that the stock category does not have a great impact on the prediction accuracy of the model. The average prediction accuracy of the CNN model is 0.578, which is lower than that of the Convolutional Neural Network-Relevance model, and the prediction accuracy of the LSTM model is 0.592, which is better than that of the Long Short-Term Memory-Relevance model. The designed model can be used to predict the stock market to guide investors to make effective investments and reduce investment risks based on relevant cases. The research makes a certain contribution to improving the company's income and stabilizing the national economic development.