market news analytical platform
(STOCK MARKET/MEDIA EVENTS REAL-TIME CORRELATION)
Service Description

Market News Analytical Platform

Purpose:

To determine matches between the financial market’s movements and mass media activity events that may have caused these movements.

Why:

Assuming mass media events can have a significant impact on the market environment, and using proprietary patent pending Natural Language Processing technologies, the Market News Analytical Platform determines what the possible correlation between market data and media events’ activity (RSS, news, blogs, etc) is.

How:

The Market News Analytical Platform constantly collects and analyzes a set of various news sources and social media (currently there are 1,375,234 RSS entries) and collects market data (currently yahoo.finance) from different exchanges.

The Analytical Engine examines the degree to which media content can be analyzed in order to detect favorable and unfavorable news items and in turn, the degree to which news coverage can impact behavioral patterns in market activity.

The result is converted to a quantitative output time series and provided as three time stamp-synchronized charts:

  • Combined Media Index - reflects current and past media behaivior.
  • Market Data - currently uses last price.
  • Calculated correlation coefficient between media activity and last price movement.

Running the real-time dashboard service correlates mass media activity with current price movement (five-second refresh time on free version).

By analyzing how the market has behaved in the past under certain situations, a user would be able to correlate market activity with current price movements and therefore formulate a trading strategy.

The qualitative result can be:

  • delivered as a “standalone” signal, providing an aggregated level of information density and a proposition about the company’s ticker (a signal of level 1 monitor, for example).
  • incorporated into quantitative models, leveraging clients’ market data can improve lift and provide the advantage of trading in near real-time.
Project Details
Launch Market News Analytical Platform