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News analytics: Framework, techniques, and metrics
Sanjiv R. Das
ABSTRACT
News analysis is defined as “the measurement of the various qualitative and quantitative attributes of textual news stories. Some of these attributes are: sentiment, relevance, and novelty. Expressing news stories as numbers permits the manipulation of everyday information in a mathematical and statistical way” (Wikipedia). In this article, I provide a framework for news analytics techniques used in finance. I first discuss various news analytic methods and software, and then provide a set of metrics that may be used to assess the performance of analytics. Various directions for this field are discussed through the exposition. The techniques herein can aid in the valuation and trading of securities, facilitate investment decision making, meet regulatory requirements, or manage risk.
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