Using the multidimensional scaling method when assessing the financial feasibility of including foreign exchange market assets in securities portfolios

Abstract

Subject. This article discusses the application of the multidimensional scaling method to improve the methods of formation and effective management of a portfolio of securities. Objectives. The article aims to prove the rationality of using the multidimensional scaling method to assess the financial feasibility of including foreign exchange market assets in securities portfolios. Methods. For the study, we used the methods of correlation analysis and multidimensional scaling. Results. The article finds that the use of the multidimensional scaling method helps identify similar features of the assets of the securities market and the foreign exchange market, and confirms the rationality of using this method when assessing the financial feasibility of including foreign exchange market assets in securities portfolios. Conclusions. The article concludes that it is necessary to make changes to the traditional decision-making model in portfolio investment, recognizing the use of multidimensional scaling to assess the economic feasibility of including foreign exchange market assets denominated in the same currency as portfolio assets in securities portfolios as rational.