Systems and methods for data mining and modeling

Abstract

Techniques for prediction of financial instrument returns, identifying statistical history, the discovery of pricing anomalies, and financial instrument visualization are disclosed. In one particular exemplary embodiment, the techniques may be realized as a method for identifying financial instrument returns and pricing anomalies including matching, using at least one computer processor one or more portions of current market data associated with a financial instrument with historical market data, averaging outcomes of matched historical market data, and providing a probabilistic outcome for financial instrument returns, pricing anomalies, or other metrics based on the matched historical market data and the current market data. Techniques for financial instrument analysis may also include processing event data, correlating the event data using a large volume of historical market data to identify a predicted impact on returns of a financial instrument and / or pricing anomalies, and presenting the predicted impact to a user (e.g., in near real time).

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This patent application claims priority to U.S. Provisional Patent Application No. 61 / 823,793, filed May 15, 2013, which is hereby incorporated by reference herein in its entirety.[0002]This patent application claims priority to U.S. Provisional Patent Application No. 61 / 899,649, filed Nov. 4, 2013, which is hereby incorporated by reference herein in its entirety.BACKGROUND[0003]The ability to monitor, track and predict financial instrument characteristics, including returns, is useful to make informed decisions about such financial instruments, especially in the service of managing risk, constructing diversified and balanced portfolios, and identifying excess returns. Identifying, analyzing, and conveying financial information in a meaningful and timely manner is a challenge due to the volume of the data to be analyzed and comprehended. Comparing financial data with non-financial statistics (e.g., events such as for example, weather) is ...

AI Technical Summary

Benefits of technology

This patent describes a system that allows users to analyze financial instruments by creating a user interface that displays a range of distribution data and presents specific indicators, such as color or patterns, to easily identify particular performances or sectors. The system also allows users to drill down into the data to view individual components or financial instruments. The system uses templates to query large amounts of data and can back test queries against historical market data to identify impacts. Users can also create and test optimal investment strategies without relying on software engineers or quants. Additionally, the system can increase the amount of historical market data by identifying correlations with additional data.

Problems solved by technology

Modeling financial data to understand a distribution of financial instrument performance has traditionally presented a challenge (e.g., understanding returns, a probability of returns, and pricing anomalies which arise for a plurality of reasons but are frequently undiscovered statistically).

Due to human and interface limitations displaying a significant amount of financial data in a timely and meaningful manner has not been performed.

Additionally, discovering, in a large volume of data, meaningful statistical anomalies which may impact returns and presents them in a comprehensible and timely manner is a significant challenge.

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