An Image of the Market

 

 

Is there another way to see of the whole market beyond composite indexes and statistical features? How to represent the market beyond top-down categories? It is all about “representation” and “resemblance”. Lets see the whole market and its fluctuations as a time varying random field. Then the question that I am asking is what would be the best structure of this random field?

Assume each symbol (in the NYSE market for example) is a pixel in an image. Then the question is which pixel should be the neighbor of which other pixels to finally give us a better image of the market? Like when you see an image of a face and you see the face is smily, but you don’t care about individual pixels of the image that much.

This is the main idea of my recent project that I call an image of the market. It can be an image of the city, but definitely different than what Kevin Lynch greatly did in 1960.

I will mainly use ideas from image processing, spatiotemporal dynamics, Markov random fields, and high dimensional time-series forecasting.

3dimage from: http://finviz.com

Advertisements

One thought on “An Image of the Market

  1. Pingback: An Image of the Market (2) | Vahid Moosavi

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s