{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/canonical-sectors-and-evolution-of-firms-in","title":"Canonical Sectors and Evolution of Firms in the US Stock Markets","arxiv_id":"1503.06205","date":"2015-03-20","proceeding":null,"authors":["Lorien X. Hayden","Ricky Chachra","Alexander A. Alemi","Paul H. Ginsparg","James P. Sethna"],"abstract":"A classification of companies into sectors of the economy is important for\nmacroeconomic analysis and for investments into the sector-specific financial\nindices and exchange traded funds (ETFs). Major industrial classification\nsystems and financial indices have historically been based on expert opinion\nand developed manually. Here we show how unsupervised machine learning can\nprovide a more objective and comprehensive broad-level sector decomposition of\nstocks. An emergent low-dimensional structure in the space of historical stock\nprice returns automatically identifies \"canonical sectors\" in the market, and\nassigns every stock a participation weight into these sectors. Furthermore, by\nanalyzing data from different periods, we show how these weights for listed\nfirms have evolved over time.","url_abs":"http://arxiv.org/abs/1503.06205v5","url_pdf":"http://arxiv.org/pdf/1503.06205v5.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"canonical-sectors-and-evolution-of-firms-in","repo_url":"https://github.com/lxh3/aa-stocks","is_official":0,"mentioned_in_paper":0,"mentioned_in_github":1,"framework":"none","reach":null}],"tasks":[{"task_slug":"classification-1","task_name":"Classification"}],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}