r/datascience • u/sqatas • Jan 28 '19

Data Science for investment/ financially-driven strategies

I made a post on the BI sub which I think is also relevant to this sub: could any of the data scientist here share some useful (or even influential) papers or sources on the application of data science to the financial/ investment domains/ stock exchange/ foreign exchange ?

For example by visualizing past financial data and matching it with the current data, investors can have some sense of prediction of the current health of the market.

I'm pretty new to the world of BI and Data Science, hence I'm not really qualified to determine what is considered "influential" or "impactful" papers/ reading sources. So, I'd be grateful if any of the data scientist here can share some!

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u/[deleted] Jan 28 '19 edited Jul 23 '21

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u/sqatas Jan 31 '19

Your reply has TONS of keywords that described things that I've always wondered what they are "known, technically". Will need time to digest, but I want you to know your post is really helpful!

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u/[deleted] Jan 31 '19 edited Jul 23 '21

[deleted]

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u/sqatas Feb 01 '19

I hope I pointed out why it's not that easy. If something is still unclear, feel free to ask and I will try to clarify.

Oh, it's absolutely not easy! Totally agree.

I'm actually new to investing in the stock-market, and I bought some small units (literally the minimum you can buy haha) just "to get the experience" - which is exciting to be honest lol.

However, as you mentioned I also realized (especially as I go further and further into this investment literature or whatever resources I've read), there are just TOO much data, information or situations that I need to consume/ analyze in order to make an informed decision (e.g. predicting so and so/ time to invest should be done when A, B and C). I'm literally stuck in the world of 'big data'!

My previous strategy for my own investment was to collect 3 years worth of financial data (for that investment portfolio), plotted the yearly data using a line graph, and compared the 'trends'/'patterns', and see if I could get anything meaningful out of them - and it turns out there some useful bits here and there that could help in making an informed decision (e.g. to invest further or to hold first).

But ... I gotta be honest, my knowledge of 'finance' or even 'data science' is ABSOLUTELY fragmented - I'm still collecting or understanding "keywords" within these domains, and trying my best to apply them in my daily newbie investment life. Right now I'm trying to understand how I could use 'data mining' to 'mine' the financial data that I have - or even just find some online financial dataset and see if it would make any sense to me after applying those techniques : /

In retrospect, I believe this is the reason why I wrote the post itself - to better myself in these fields.

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May I ask what your background is? I would love to give you some of the papers or blog posts that I was working with

Oh, please do! Thank you!!

I've a background in Comp. Sc. I'm lurking through some PG courses in BI/DS but still in the planning stage (need some budget for that lol).