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Applying Ontology-Informed Lattice Reduction Using the Discrimination Power Index to Financial Domain

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Enterprise Applications, Markets and Services in the Finance Industry (FinanceCom 2018)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 345))

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Abstract

Contemporary financial institutions are relying on varied and voluminous data and so they need advanced technologies to provide their customers with the best possible services. Capturing the meaning, or semantics, of data and presenting these semantics in simplified yet relevant models are key challenges to achieving this. Formal Concept Analysis (FCA) automates the analysis of properties and instances of the data, generating a lattice which groups properties and instances into concepts. This lattice can be used as automatically generated semantic structure describing the domain, yet the complexity and size of the resultant lattice render this technique unusable in most practical cases involving financial data. To tackle this, our Ontology-informed Lattice Reduction approach can guide the reduction of the lattices generated from financial sampled data. We validate the adaptation of the approach to the financial domain through a real-world asset allocation case study, demonstrating that the approach achieves good overall performance and relevant results.

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Notes

  1. 1.

    Exchange Traded Funds or ETFs are a basket of other assets that are designed to trace the performance of an index.

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Author information

Authors and Affiliations

  1. Alliance Manchester Business School, University of Manchester, Manchester, UK

    Qudamah Quboa & Nikolay Mehandjiev

  2. School of Computer Science and Engineering, University of New South Wales, Sydney, Australia

    Ali Behnaz

Authors
  1. Qudamah Quboa
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  2. Nikolay Mehandjiev
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  3. Ali Behnaz
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Corresponding author

Correspondence to Qudamah Quboa .

Editor information

Editors and Affiliations

  1. Alliance Manchester Business School, Manchester, UK

    Nikolay Mehandjiev

  2. Alliance Manchester Business School, Manchester, UK

    Brahim Saadouni

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Quboa, Q., Mehandjiev, N., Behnaz, A. (2019). Applying Ontology-Informed Lattice Reduction Using the Discrimination Power Index to Financial Domain. In: Mehandjiev, N., Saadouni, B. (eds) Enterprise Applications, Markets and Services in the Finance Industry. FinanceCom 2018. Lecture Notes in Business Information Processing, vol 345. Springer, Cham. https://doi.org/10.1007/978-3-030-19037-8_11

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  • DOI: https://doi.org/10.1007/978-3-030-19037-8_11

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-19036-1

  • Online ISBN: 978-3-030-19037-8

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