News Analytics for Financial Decision Support

By Viorel Milea

This PhD thesis contributes to the newly emerged, growing body of scientific work on the use of News Analytics in Finance. Regarded as the next significant development in Automated Trading, News Analytics extends trading algorithms to incorporate information extracted from textual messages, by translating it into actionable, valuable knowledge. The thesis addresses one main theme: the incorporation of news into trading algorithms. This relates to three main tasks: i) the extraction of the information contained in news, ii) the representation of the information contained in news, and iii) the aggregation of this information into actionable knowledge. We validate our approach by designing and implementing three semantic systems: a system for the computational content analysis of European Central Bank statements, a system for incorporating news in stock trading strategies, and a time-aware system for trading based on analyst recommendations. The approach we choose for addressing these tasks is an interdisciplinary one. For the extraction of information from news we rely on approaches borrowed from Computer Science and Linguistics. The representation of the information contained in news is realized by using, and extending, the state-of-the-art in Semantic Web technology. We do this by bringing together insights from Logics, Metaphysics, and Computational Semantics. The aggregation of information is done by using techniques and results from Computational Intelligence and Finance.

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