Textual Analysis of Financial News Stories

  45 s

I came across an interesting blog post in Technology Review that showcased the Arizona Financial Text system (AZFin Text). According to the author, Christopher Mims: "...it works by ingesting large quantities of financial news stories (in initial tests, from Yahoo Finance) along with minute-by-minute stock price data, and then using the former to figure out how to predict the latter. Then it buys, or shorts, every stock it believes will move more than 1% of its current price in the next 20 minutes - and it never holds a stock for longer." What I find interesting is the spawn of discussions around anything related to trading and automated text analysis - it varies from ethical arguments to accuracy discussions to the human interaction factors. Regardless, text analysis in financial services is an area that has been progressing for years and seems to have been able to find some traction when applied correctly.

Categories: Sentiment Analysis, Text Analytics