I attended today’s class in the course Trading Strategies and Systems offered by Prof Vasant Dhar from NYU Stern School of Business. Luckily, Vasant is offering the elective course here at the Indian School of Business, so no need for transatlantic travel. The topic of this class was the use of news in trading. I won’t disclose any trade secrets (you’ll have to attend the class for that), but here’s my point: Trading is a striking example of the distinction between explanation and prediction. Generally, techniques are based on correlations and on “blackbox” predictive models such as neural nets. In particular, text mining and … Continue reading Trading and predictive analytics
What is the difference between “prediction” and “forecasting”? I heard this being asked quite a few times lately. The Predictive Analytics World conference website has a Predictive Analytics Guide page with the following Q&A: How is predictive analytics different from forecasting? Predictive analytics is something else entirely, going beyond standard forecasting by producing a predictive score for each customer or other organizational element. In contrast, forecasting provides overall aggregate estimates, such as the total number of purchases next quarter. For example, forecasting might estimate the total number of ice cream cones to be purchased in a certain region, while predictive analytics tells you which individual … Continue reading “Predict” or “Forecast”?
Business Intelligence and Data Mining have become hot buzzwords in the West. Using Google Insights for Search to “see what the world is searching for” (see image below), we can see that the popularity of these two terms seems to have stabilized (if you expand the search to 2007 or earlier, you will see the earlier peak and also that Data Mining was hotter for a while). Click on the image to get to the actual result, with which you can interact directly. There are two very interesting insights from this search result: Looking at the “Regional Interest” for these terms, we see that … Continue reading Analytics: You want to be in Asia
click to read the latest issue A bunch of interesting articles about business analytics and predictive analytics from a managerial point of view, in the November issue of INFORMS Analytics magazine. Continue reading November Analytics magazine on BI