For Finance

RAPIDMiner

New Order

Around 70 per cent of the orders to buy or sell on Wall Street

are now placed by quant driven software.

Information flow

Information flow is increasing but not not necessarily

Intelligence.

Efficient Market theory

EMT has dominated market theory but increasingly

behavior analysis plays a major part.

RapidMiner

Innovative products like RapidMiner have a role in this

financial ecosystem. Cutting edge and flexibility is key

relative to the established players.

WHAT’s CHANGED ?

Old Order

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w

o

5

$

What

Drives

Global

economy

Fund

MANAGERS

K

Hedge

Fundsx% of the Market

HSovereign

Wealth

FundsxReal

Economy

(

Quant

Finance

bcommodities

demand

A

a

Gold

S

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to view important information!

MarketsMarket

ANALYSTS

K M&A

Asset

ManagerSChina

$

US

FED

Financial

Media

K

central

banks

High

Frequency

Trading

Financial

Data

6

5

4

1

3

2Easy ?

Much of the data is still

unstructured. New tools

help

Open ?

Hardly but some

encouraging signs

Free ?

Some free data but much more

paid aggregation

Transparent ?

Where did this data come

from

Market Observations

Usage Rights

Free or paid data may be licensed

only. No redistributions rights.

Data Source ?

Much of the data used in financial

analysis originates externally to the

company reviewing

Finance and economics ExtensionEasy: Data operators pull financial data directly

into Rapidminer.

Live : Direct from source so data is not stale

Free & Open : No cost for using data

Unrestricted : Free to redistribute*

Multi-instrument : Stock, bond, indexes,

currencies, etc.

Transformation: Allow one to transform the data

into more usable financial formats

Analytics: Backtester which is essential to test

models

Sentiment: Search unstructured data

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K

K

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K

Open Market Data Initiative

Bloomberg Data

Open API : Free to use license. No free

access to subscription content

Open Identifiers : Bloomberg ID

Massive Aggrataor : news, exchange data,

reference data, etc

Markets: Global and covers all type of markets,

currencies, bonds, stocks.

Live: detail data

Restrictions: Not licensed to redistribute. Data

must stay local

K

K

K

K

K

K

Federal Reserve Economic Data

FRED Data

236,000 US and international Time Series

Sources : Central banks,corporations, US Gov,

Economic Institutions

Categories : Academic, Financial, and Economic

data.

Live: updated and refreshed daily

FREE: No restrictions on redistribution but you do

need to register for an API key

K

K

K

K

K

World DataBank

World Bank Data

8,000 : Data series

API : Well documented

Categories : Academic, Financial, and Economic

data.

Live: API update daily

FREE: No restrictions on usage and no api keys

necessary

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K

K

K

K

EuroStat Statistics Database

EUROSTAT Data

5,300 : Data series

No API : Difficult to pull systematically

Categories : Government, Institutional, Financial,

and Economic data.

Live: update daily

EU: Mostly EU data.

FREE: No restrictions on usage and no api keys

necessary

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K

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K

TransformationsDifferencing : Use this operator to calculate

period-over-period change in a series.

Indexing : Use this operator to index a series to

another basis (e.g., Inflation Adjustment).

Replace Missing : Replace missing values for a

set of attributes. Useful in a merged financial

timer series where one needs to replace a

missing current value in a row with the previous

value.

REBASE: UUse this operator to convert one or

more series to a common basis.

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K

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K

Lagged/forward returns : Use this operator to

calculate lagged/forward security return.

cumulative SUMS: Use this operator to calculate

the cumulative sums of one or more attributes.

winsorize : This operator calculates the

percentiles of a numeric attribute and replaces

all values above and below those percentiles

with the respective percentile values.

Fincalcs: Use this operator to calculate the

cumulative sums of one or more attributes.

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YOUTHANK