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

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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.

Bibliographical metadata

Original languageEnglish
Title of host publicationEnterprise Applications, Markets and Services in the Finance Industry
EditorsNikolay Mehandjiev, Brahim Saadouni
PublisherSpringer Nature
Pages165-179
Number of pages15
Volume345
ISBN (Electronic)978-3-030-19037-8
ISBN (Print)978-3-030-19036-1
DOIs
Publication statusPublished - 2019