Tangled String for Multi-Scale Explanation of Contextual Shifts in Stock Market

TL;DR

This paper extends the Tangled String visualization tool to analyze and explain multi-scale contextual shifts in stock markets, demonstrating its effectiveness in identifying change points with high precision over a 12-year period.

Contribution

It introduces an extended version of Tangled String for detecting market-triggering stocks and explaining contextual shifts, integrating data-driven innovation platform features.

Findings

High precision in detecting change points coinciding with real stock price changes

Effective visualization of multi-scale stock market dynamics

Demonstration over 12 years of Tokyo Stock Exchange data

Abstract

The original research question here is given by marketers in general, i.e., how to explain the changes in the desired timescale of the market. Tangled String, a sequence visualization tool based on the metaphor where contexts in a sequence are compared to tangled pills in a string, is here extended and diverted to detecting stocks that trigger changes in the market and to explaining the scenario of contextual shifts in the market. Here, the sequential data on the stocks of top 10 weekly increase rates in the First Section of the Tokyo Stock Exchange for 12 years are visualized by Tangled String. The changing in the prices of stocks is a mixture of various timescales and can be explained in the time-scale set as desired by using TS. Also, it is found that the change points found by TS coincided by high precision with the real changes in each stock price. As TS has been created from the data-driven innovation platform called Innovators Marketplace on Data Jackets and is extended to satisfy data users, this paper is as evidence of the contribution of the market of data to data-driven innovations.