market news analytical platform
(risk management and trends assessment)
Service Description
Purpose:
  • To proactively develop early warning models for financial distress analyzing and qualifying news media.
  • To integrate Combined Media Index into portfolio/economic-forecast models and Company’s early-warning systems.
  • Systematically analyze published expectations on industries to determine industry related trends.
  • Conduct benchmarking with own risk assessment.
Why:

Combined Media Index has distinct advantages over traditional measures.

First, it assesses a completely new sources of information: it retrieves default factor such as abnormal events that are hardly covered in modern rating models.

Another advantage is that some news articles are forward looking - adding such information can give it a prospective bias.

It is a great benefit in applying the Combined Media Index as an early indication of a company’s troubles, either by itself or integrated into an early-warning system with other financial, industry, and behavioral factors.

It enables the businesses and government organizations to intervene early or adopt proper strategies if needed.

Such behavior-based information is scrutinized by researchers and analysts to monitor both market anomalies and identify potential investment opportunities.

Existing system also has the potential to help companies better understand customer needs, improve customer satisfaction and create better portfolio management system.

How:

The basic idea is simple and elegant:

The Market News Analytical Platform constantly monitors a set of various news sources and social media (currently there are 1,375,234 RSS entries) and collects market data (currently yahoo.finance), calculating the Combined Media index which summarizes a number of semantic parameters of media.

Textual information in any form is assigned a Combined Media Index – a number that represent kind and degree of descriptiveness, activity of discussion polarity and sentiment level expressed by news writer or reviewer.

Determined Combined Media Index can be converted, aggregated, correlated with Market Data and can be used to build prediction model.

Project Details