Alternative Data and NLP in Quant Strategies › Key Parameters
Michael BrenndoerferJanuary 4, 20261 min read
Quantitative FinanceAll chapters Part 13 of 15Machine Learning and Alternative Data
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Key parameters for earnings call text analysis:
- certainty_words: Set of words indicating high certainty such as 'definitely', 'certainly', or 'absolutely'. Higher certainty language often correlates with management confidence.
- hedge_words: Set of words indicating hedging or uncertainty, such as 'possibly', 'maybe', or 'might'. Excessive hedging may signal underlying concerns.
- future_words: Set of forward-looking terms, such as 'will', 'expect', or 'anticipate'. Tracks management's orientation toward future prospects.
- avg_word_length: Proxy for linguistic complexity. Longer words may indicate obfuscation or technical language.