Research project TREMA
As a technology-oriented and innovative financial services provider, JRC Capital relies on continuous scientific research
From October 2006 to March 2008, JRC Capital Management participated in the Trema research project. Managing director Jannis Raftopoulos was involved in the project as initiator and coordinator. Other project partners were the IT service provider Neofonie, the market research institute Metrinomics and the Free University of Berlin. With Trema (trend mining, analysis and fusion of multimodal data), the local Berlin research consortium had set itself the goal of improving trend forecasts through the combined evaluation of quantitative and qualitative data. The research work carried out as part of the ProFIT program of the State of Berlin was funded by the Investitionsbank Berlin.
Improvement of previous forecast models through Trema
The Trema project attempted to identify trends by analyzing financial news in order to incorporate them into future market forecasts. Previously existing forecast models were based exclusively on numerical market data. The Trema participants asked themselves how the models could be improved by adding qualitative data. Accordingly, the analysis and evaluation of qualitative information should ensure an information advantage. The focus of the research activity was the application of qualitative analysis methods to multimodal data with a focus on combinations of processes.
Two application areas with complementary data were dealt with in the project:
Financial data analysis
- Price time series (quantitative)
- Message texts (qualitative)
- High frequency data
- Frequent trend changes
- Surveys (quantitative)
- Secondary research (qualitative)
- Low frequency data
- Frequency of trend movements
Due to the massive social progress in the areas of data communication and knowledge exchange, an abundance of capital market news could be observed even before the project began. For this reason, the qualitative data collected as part of Trema has been carefully filtered. Semantic analyzes were used to specify the search results. Possible connections were identified and discussed by means of cluster analyzes. In addition, the texts were examined with regard to their topic structure and topic origin. The ontology was based on a three-stage approach in the form of the definition of keywords, the formation of subject areas as well as the structure and classification.
JRC Capital Management: Success through Scientific Research
Trema was just one of many successful research projects that JRC Capital Management participated in. Continuous research ensures that the company’s internal know-how as a technology-oriented and innovative financial service provider is expanded. The scientific approach and the continuous exchange with partners from business and science give JRC Capital Management a knowledge advantage that it uses in the interests of its customers.
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