The Handbook of News Analytics in Finance pptx

[...]... finance at the School of Accounting, Economics and Finance, Deakin University, Australia Dr Duong’s research interests are in the areas of market microstructure, derivatives market, and corporate finance He has xxii About the contributors published in the Journal of Banking and Finance, the Journal of Futures Markets, and the Pacific-Basin Finance Journal Michal Dzielinski is currently working towards... Major news events can have a significant impact on the market environment and investor sentiment, resulting in rapid changes to the risk structure and risk characteristics of traded assets Though the relevance of news is widely acknowledged, how to incorporate this effectively, in The Handbook of News Analytics in Finance # 2011 John Wiley & Sons Edited by L Mitra and G Mitra 2 The Handbook of News Analytics. .. message of the book succinctly and either to motivate the reader to explore its content or to leave the reader feeling that just maybe he or she is losing out if the book’s theme does not fire their imagination So, by ignoring this book you will never know whether you might have seen the light and gleaned the winning strategies of financial analytics! The subheadings in this preface are deliberately linked... investment strategies Part 3 How news analytics can be used for risk control Part 4 The insight of industry leaders and relevant commercial information Depending on what interests them most, readers may turn their attention to any of these parts, scan the titles and abstracts, and read the articles as they are presented There is very little interdependence between these four parts of the handbook The. .. quant team instructing them to pick up this handbook and mine it for nuggets of knowledge You may also post a review in your blog or alert your peers in Linked -in depending on how much enthusiasm we have been able to generate The background sets the scene We then highlight the research problems that also equate with the business problems We discuss the role of news followed by an outline of the different... unwavering conviction that they will find the silver bullet xiv Preface The research problem ¼ the business problem The world of financial analytics is concerned with three leading problems: (i) The pricing of assets in a temporal setting (ii) Making optimum investment decisions low frequency or optimum trading decisions high frequency (iii) Controlling risk at different time exposures The role of news News... PhD at the Swiss Banking Institute under the supervision of Prof Thorsten Hens His research focus is on quantifying the impact of incoming news stories on the stock market for applications in financial modelling His research is part of an interdisciplinary project, involving researchers from finance, communication science, computer linguistics, as well as industry partners Armando Gonzalez is the co-founder... financial engineering goes hand in hand with information engineering to create winning strategies The road map As editors we set the scene in Chapter 1 of the book In this chapter we provide a general review of applications of NA in finance We discuss news data sources, methods of turning qualitative text to quantified metrics and a range of models and applications In particular, we would like to draw the attention... to filings via the web (see http://www.sec.gov/edgar.shtml) Premium access gave tools for analysis of filing information and priority earlier access to the data In Applications of news analytics in finance: A review 5 2002 filing information was released to the public in real time Filings remain unstructured text files without semantic web and XML output, though the SEC are in the process of upgrading their... applied in trading systems and quantitative models they need to be converted to a quantitative input time-series This could be a simple binary series where the occurrence of a particular event or the 6 The Handbook of News Analytics in Finance publication of a news article about a particular topic is indicated by a one and the absence of the event by a zero Alternatively, we can try to quantify other . by the prospect of determining the quantified sentiment of the market by analysis of the news. There is one common aspect which brings the contributors of. with the business problems. We discuss the role of news followed by an outline of the differen t technologies that underpin news analytics (NA). We then