Machine Learning is Stocks. Pre-Processing for Unsupervised Company Classification.

This article the idea of building a new, data driven classification of companies based on their financials, instead of the type of business they do. The premise of this study is based on the idea that great stocks to buy would be superior among their peers. In this context, I define a peer group as a group of companies that have similar financial structure (e.g. If you haven't read an introduction, I suggest you read my preface to this study here: In the previous article, I've selected 5 dimensions to define financial structure of a company: I've also made sure that these dimensions are independent. This is an important consideration since I want to measure how a company is doing at each independent front regardless of its performance elsewhere.