africaen

Data mining

Data mining, also referred to as data dredging, data fishing, data fitting or data snooping, is the misuse of quantitative data analysis to report patterns that can be presented as statistically significant when, in fact, there is no real underlying phenomenon.

P-hacking is a form of data mining. This is usually done by performing large numbers of statistical tests of many different hypotheses on the data, and only reporting the results that can be considered significant in terms of p-value.

Data mining is typically found in medical studies, in fields such as epidemiology or psychology for example, where large datasets are used. But it also used in other scientific disciplines, in particular in finance. In recent years, many prominent academics have warned about the risk of data mining in financial research.

Quantitative investing: invisible layers surface to deliver attractive returns
Quantitative investing: invisible layers surface to deliver attractive returns
Read more
‘I have always tried to make sense of human behavior’
‘I have always tried to make sense of human behavior’
People’s normal wants, even more than their cognitive and emotional shortcuts and errors, underlie answers to important questions of finance.
19-05-2022 | Interview
Quant chart: Value accelerates to strongest start in decades
Quant chart: Value accelerates to strongest start in decades
Value has achieved the best start to a calendar year in over 35 years.
16-05-2022 | Insight
‘A strong research culture enables you to stay true to your investment philosophy’
‘A strong research culture enables you to stay true to your investment philosophy’
Quant investing is very much a team sport, in fact more so than ever.
13-05-2022 | Interview
Logo

Disclaimer

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

Please confirm that you are a professional investor and/or institutional investor and that you have read, understood and accept the terms of use for this website.

I Disagree