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Application of Intelligent Systems for News Analytics

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Financial Decision Making Using Computational Intelligence

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 70))

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Abstract

The chapter starts with an overview of existing text mining systems whose main purpose is predicting equity price movements on the financial markets. In general, these systems transform the input text to a so-called sentiment score, a numerical value equivalent to the opinion of an analyst on the influence of the news text to the further development of the regarded stock. In the second part it is explored how the sentiment score relates to some of the relevant macroeconomic variables. It is suggested that raw sentiment score can be transformed to reveal sentiment reversals, and such transformed indicator relates better to future returns. As an example the project FINDS is presented as an integrated system that consists of a module that performs sentiment extraction from the financial news, a benchmark module for comparison between different classification engines, and a visualization module used for the representation of the sentiment data to the end users, thus supporting the traders in analysing news and making buy and sell decisions.

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Authors and Affiliations

  1. Institute AIFB, Karlsruhe Institute of Technology, Karlsruhe, Germany

    Caslav Bozic & Detlef Seese

  2. School of Electrical Engineering and Computer Science, The University of Newcastle, Newcastle, Australia

    Stephan Chalup

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  1. Caslav Bozic
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  2. Stephan Chalup
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Correspondence to Detlef Seese .

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Editors and Affiliations

  1. Dept. Production Engineering, and Management, Technical University of Crete, University Campus, Chania, 731 00, Greece

    Michael Doumpos

  2. , Department of Production Engineering and, Technical University of Crete, University Campus, Chania, 73100, Greece

    Constantin Zopounidis

  3. , Department of Industrial and Systems Eng, University of Florida, Weil Hall 401, Gainesville, 32611, Florida, USA

    Panos M. Pardalos

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Bozic, C., Chalup, S., Seese, D. (2012). Application of Intelligent Systems for News Analytics. In: Doumpos, M., Zopounidis, C., Pardalos, P. (eds) Financial Decision Making Using Computational Intelligence. Springer Optimization and Its Applications, vol 70. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-3773-4_3

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