* Cluster analysis is class of tools in which you use to group complex data into distinct clusters based on observable variation.* Cluster analysis is closely related to the idea of latent class analysis in which data is grouped into classes ...
An exploration of the usefulness of sectors. Previously This subject was discussed in “S&P 500 sector strengths”. Idea Stocks are put into groups based on the sector that the company is considered to be in. Cluster analysis is a statistical technique that finds groups. If sectors really move together, then clustering should recover sectors. Will … Continue reading →