Visualizing Financial Networks @ Visualizar '11
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Visualizing Financial Networks new understanding of the financial system and implications for policy makers Inês Salpico Kimmo Soramäki VISUALIZAR’11 15 th June 2011
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New understanding of the financial system and implications for policy makers (with Ines Salpico)
Transcript of Visualizing Financial Networks @ Visualizar '11
Visualizing Financial
Networksnew understanding of the financial system and implications for policy
makers
Inês SalpicoKimmo Soramäki
VISUALIZAR’1115th June 2011
Context: Aftermath of the financial crisis
Financial System
understood as a network
Systemic risk:“too connected to fail”
Stress and increase of regulation
Extended mandate(s) to collect data
Need to process and analyze this
data
New paradigm of
data collection and analysis
Questions:
• How to make sense of data?
Questions:
• How to make data analysis actually operative in supervision and regulation?
• How to make sense of data?
SUPERVISIONREGULATION
Data
THEORYRESEARCH
Methods
New analytical paradigms
namely: network
Questions:
• How to make data analysis actually operative in policy and supervision?
• How to make sense of data?
• How to use analysis to actually see what’s happening in the system?
x(You wish!)
Intelligence?
• Financial crisis are different and rare
Intelligence?
• Financial crisis are different and rare
• The patterns to be recognized would have to be frequent enough for computers to learn
The wire – video excerpt
Intelligence?
AI - Artificial Intelligence
Intelligence?
AI - Artificial Intelligence
IA - Intelligence Amplification
Tools that make data and analysis actionable for humans
ref: William Ross Ashby (1956) in ‘Introduction to Cybernetics’
Visualization
Tools vs. Customised Visualizations
> Fusion Charts http://www.fusioncharts.com/
> Gephi http://gephi.org/
> Google Chart Tools http://code.google.com/intl/pt-PT/apis/charttools/
> HighCharts http://www.highcharts.com/
> Many Eyes (IBM)
http://www-958.ibm.com/software/data/cognos/manyeyes/
> Protovis http://vis.stanford.edu/protovis/
> Tableau http://www.tableausoftware.com/
Tools vs. Customised Visualizations
Visualization
> Information is Beautiful
http://www.informationisbeautiful.net/
> Infosthetics http://infosthetics.com/
> Flowing Data http://flowingdata.com/
> Marumushi
http://marumushi.com/tags/information+visualization
> Visual Complexity http://www.visualcomplexity.com/vc/
Tools vs. Customised Visualizations
Visualization
Infographics vs. Analytical Visualizations
> Representation: Qualitative vs. Quantitative
Infographics vs. Analytical Visualizations
> Representation: Qualitative vs. Quantitative
> Focus: Message vs. Data
> Representation: Qualitative vs. Quantitative
> Focus: Message vs. Data
> Exploration: Limited vs. Unlimited
Europe's Web of DebtBill Marsh/The New York Times Visual Science Series , May 1, 2010
Analysis + Visualization
Infographical and Analytical
> Qualitative and Quantitative
> Exploration and analysis of the raw data
Paradigm
Data validation
Analysis and modeling Visualization
understanding
Objectives
• Provide a tool for time series analysis of network data in finance
• Provide a platform for building agent based and simulation models
• Make advances in research available to policy
• Based on 7 years of research with Central Banks
• Focus on ease of use, performance and flexibility
FNA demo – video excerpts
FNA
Platform for
– Exploring – Analyzing– Visualizing
financial networks
Versions
– Web – Cloud service– REST API (for accessing FNA engine from web applications)
– Intranet– Operative use– Integration to databases and user management– Browser based GUI
– Desktop – By demand, academic use– Command line version available– Integration with external programs like Matlab, Stata, Excel, etc.
