HOW TO GROUP FINANCIAL DATA WITH MAXIMUM HOMOGENEITY?

Authors

  • Mehmet Baran
  • Sıtkı Sönmezer

DOI:

https://doi.org/10.5195/emaj.2013.36

Abstract

Grouping may be an obstacle itself or it may have to be improved to extract better information out of a data stream. Finding trends and dividing a population into parts may be crucial for analyses. This paper offers a modified version of Fisher method that may smoothen the cut point transitions and give out better results. Proven methodology is given with a comparison with the original method. The method may be helpful in forming subgroups in financial data, possibly in technical analyses.Keywords: Grouping, Fisher Method, Trends, Cut points

References

Duncan, G., Gorr, W. L., & Szczypula, J., 2001, Forecasting analogous time series. In J. S. Armstrong (Ed.), Principles of forecasting: A handbook for researchers and practitioners, 195–213. Dordrecht: Kluwer.

Fisher W. D., 1958, On grouping for maximum homogeneity. Journal of the American Statistical Association, 53, 789–798.

Huang W. & Y. Zhang, 2012, Structural Change Modeling of Singapore Private Housing Price in Simultaneous Equation Model, Journal of Financial Risk Management. Vol.1, No.2, 7-14.

Kane J. A.and J. J. Lim, 2011, Global Growth Poles in a Multipolar World Economy.

Kumar M, Nitin R. Patel, 2010, Using Clustering to Improve Sales Forecasts In Retail Merchandising, Annals of Operations Research, February, Volume 174, Issue 1, 33-46.

Maharaj, E. A., & Inder, B. A.,1999, Forecasting time series from clusters ,Monash Econometrics and Business Statistics Working Papers, Monash University, Department of Econometrics and Business Statistics, 9/99.

Teofilo F. Gonzales, 1985, Clustering to Minimize the Maximum Inter-cluster Distance, Theoretical Computer Science 38, 293-306.

Downloads

Published

2013-02-07

Issue

Vol. 3 No. 1 (2013)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.
  2. Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
  3. The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Creative Commons Attribution 4.0 International License or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions:
    1. Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site;
    with the understanding that the above condition can be waived with permission from the Author and that where the Work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license.
  4. The Author is able to enter into separate, additional contractual arrangements for the nonexclusive distribution of the journal's published version of the Work (e.g., post it to an institutional repository or publish it in a book), as long as there is provided in the document an acknowledgement of its initial publication in this journal.
  5. Authors are permitted and encouraged to post online a prepublication manuscript (but not the Publisher’s final formatted PDF version of the Work) in institutional repositories or on their Websites prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Any such posting made before acceptance and publication of the Work shall be updated upon publication to include a reference to the Publisher-assigned DOI (Digital Object Identifier) and a link to the online abstract for the final published Work in the Journal.
  6. Upon Publisher’s request, the Author agrees to furnish promptly to Publisher, at the Author’s own expense, written evidence of the permissions, licenses, and consents for use of third-party material included within the Work, except as determined by Publisher to be covered by the principles of Fair Use.
  7. The Author represents and warrants that:
    1. the Work is the Author’s original work;
    2. the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
    3. the Work is not pending review or under consideration by another publisher;
    4. the Work has not previously been published;
    5. the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
    6. the Work contains no libel, invasion of privacy, or other unlawful matter.
  8. The Author agrees to indemnify and hold Publisher harmless from Author’s breach of the representations and warranties contained in Paragraph 6 above, as well as any claim or proceeding relating to Publisher’s use and publication of any content contained in the Work, including third-party content.

Revised 7/16/2018. Revision Description: Removed outdated link.