A novel arithmetic of holistic correlation analysis

With the rapidly growing global economy, techniques for estimation models of credit risk and optimal portfolio have been in dire need in the business fields, especially on large portfolio management. In this paper we review the correlation analysis and quantization in both the credit risk evaluation and the optimal portfolio, and present a novel arithmetic through aggregating character of the conjunction graph, and then apply it to portfolio selection, which gives the decision-making better reference. We also discuss future works for this problem.