Classroom Research: Using Big Data to Predict Stock Market Patterns

Blog Outlet: American Mathematical Society
Blog Title: Classroom Research: Using Big Data to Predict Stock Market Patterns
Author: Dr. Athanasios Gentimis

Dr. Athanasios Gentimis, an Assistant Professor of Math and Analytics at Florida Polytechnic University has expertise within the field of Algebraic Topology with a special interest in Geometric Group Theory.

Topological data analysis can find clusters, algorithms and patterns within a set of data. Currently, students in research are working with Dr. Gentimis to predict patterns or occurrences within the stock market. The research is still in the methodology phase and not ready to be published yet. However, Dr. Gentimis can speak generally about the research.

The main purpose of the research project is to cluster stocks based on other attributes and not necessarily just on their prices. Dr. Gentimis and his team have created the means to download and store a structured database that monitors the changes in the stock market hourly, and the team hopes to go into greather depth within the data sets and research.

The code to conduct the study was created by Dr. Gentimis and his team. They used free software (Python, R) to perform the forecasting and modeling based on how the stocks were performing and whether they were increasing or decreasing. The team has constructed a means to find how ‘far apart’ stocks are. This way they can use a classic machine-learning tool to “cluster” the data from the stock and advise people on how to either diversify their portfolio or purchase stocks similar to the ones they have already trusted.

Dr. Gentimis and his team are employing the supercomputer at Florida Poly to take part in the data analysis. Since the algorithms are parallel in nature, the Supercomputer can analyze the required data. Dr. Gentimis provided the commentary that the results are encouraging so far.

The project was initiated by the University’s president, Dr. Randy K. Avent and is being carried over by Dr. Gentimis and Jay Stannard, a graduate research assistant in the lab as well as Jean-Louise and Jean-Partice. As the research continues, the results seem promising. Dr. Gentimis will shortly reveal his findings and conclusion upon completion of the research project.

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