I decided it would be nice to take the AEX index itself into account, to really see interesting movements of a stock price relative to the main direction of the financial market, represented by this AEX index. For you nerds out there: I added the capability for amplitude modulation and demodulation using the AEX index as the carrier and the actual stock price as the output value. From the stock value and AEX carrier value at a given time, I derive the signal which is the movement of the stock compared to the current AEX index. This signal is used for the pattern matching.
My first goal is to find similarities between AEX stocks in the last year (2007). Not all AEX stocks were included because I selected the stocks with at least a 5 year history. The Crazy system started matching all stocks and came up with some amazing similarities. Take a look at the next picture for yourself:
You can click it to enlarge. You see pairs of stocks with the right one being the best match for the left stock. It really struck me that some are really similar, check out source "Fortis" with best match "Randstad" for example. I'm not a financial analyst and have no idea if there is a reason for this match. I'd better check data from the previous years to find out if this is a reoccuring event. We also see a clear similarity between "Fortis" and "ING" which seems very possible, them being both banks.
If you would like to see more stock similarity pictures, give me a note and I'll send you some.
I will start thinking about ways to visualise similarity in large sets of data sources. For example it would be nice to have 2D or even 3D overviews showing similar data sources in clusters, enabling us to categorise sources automatically. Oh well, that's enough for now!
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