Classification, data group, quantitative criteria, ranking system, taxonomic hierarchy.

Classification is known as ways of dividing a group of objects into different sub-groups using quantitative criteria attached to these quantities.

A ranking system is a taxonomic hierarchy.

Classification example: the performance of an electric device can be classified according to domestic/industry use, heavy/light energy consumption. Within this, there will be four categories:

1) Domestic, heavy

2) Domestic, light

3) Industry, heavy

4) Industry, light

Ranking example: within the context of the above example, the profitability of factories producing corresponding appliances can be ranked as:

Domestic, light: most profitable, No. 1

Industry, light:  next profitable, No. 2

Domestic, heavy: No. 3

Industry, heavy: No.4

When quantities under investigation have many features, classification and ranking can be carried out automatically via text / quantitative analysis programmes.

One of the most recent applications from us is to classify funds of hedge funds and investment funds to obtain interesting insight into funds perfromance and  management styles (reference details to follow).