From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training (2019)

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Algorithmic trading with qualitative and text data

Algorithmic trading with qualitative and text data

From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training (2019)

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Algorithmic trading with qualitative and text data

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- [Instructor] Let's take a look at a real-world example of using textual analysis in practice. I'm in the 01_07_Transcript Word file. Now, what we're going to see here is an example of an earnings call transcript from Macy's. Most stocks will do an earnings call with investors every quarter. Very small companies might not, but the majority of them do. In this particular case, this is the third quarter earnings call transcript from Macy's. This is available from a place like SeekingAlpha.com, among others. And as you might expect, this is literally just a huge document, in this case, 28 pages long, recording everything that the analysts and the executives said on this earnings call. Now, how could you use this as an investor? Well, the traditional way would be to read through this 28-page document, and then, see if you think the executives are saying good things. If they sound optimistic about the future, buy Macy's stock. If they don't sound optimistic about the future, don't buy…

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