[R-SIG-Finance] Principal Component Analysis in Credit Risk

[Daniel Melendez]

I'm assuming based off of the information you have provided I think you may
want to look into factor analysis.  Try the psych package, it'll provide a
good base.  Plus you might want to look into cluster analysis and some
other forms of grouping techniques.

On Wed, Sep 16, 2015 at 12:50 PM, Amelia Marsh via R-SIG-Finance <
r-sig-finance at r-project.org> wrote:

> Dear Forum,
>
> I need some direction and guidance. This perhaps may sound a vague
> question, but I will try to be specific as far as possible.
>
> Recently I came to know about text analysis in R. Assuming I have analysts
> reports regarding say 250 companies. I am aware that out of these 25
> companies, 5 companies have defaulted. I have been asked to apply principal
> component analysis to each of these 25 companies to find out those words
> which if are occurring in say the 26th companies Analyst report, it will
> give me clear indication that this company will default.
>
> I understand this is really a vague question. To begin with, can Principal
> Component Analysis be used for text and if yes, can someone give me some
> direction or source.
>
> Regards
>
> Amelia
>
> _______________________________________________
> R-SIG-Finance at r-project.org mailing list
> https://stat.ethz.ch/mailman/listinfo/r-sig-finance
> -- Subscriber-posting only. If you want to post, subscribe first.
> -- Also note that this is not the r-help list where general R questions
> should go.
>



-- 
Regards

Daniel Melendez

=========================================================================

	[[alternative HTML version deleted]]