Principal Component Analysis in Credit Risk
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
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Regards Daniel Melendez ========================================================================= [[alternative HTML version deleted]]