What is Data Analytics?

What is Data Analytics?

Data analytics is the process of analyzing information through filtering it to transform the raw data into useable models.  The goal is to uncover highly probably conclusions that can be used for an an edge in future decision making after seeing repeatable patterns of behavior from the data.  

Data analytics is reliant on applying statistics primarily through computer programming to quantify past performance and project future patterns. 

It has many possible uses and paths of research including a variety of techniques and is implemented in trading, investing, business, science, politics, sports, and other areas with large diverse historical data collections. In the modern computer driven world, data analysis plays a big part in large scale decision making using more of a scientific method for assisting investors, traders, businesses, politicians, and sports teams to operate more effectively.

Data mining is used in data analysis to focus in on meaningful modeling based on statistics and pattern discovery for future predictive probabilities. Data analysis can be classified into different areas of statistics, data exploratoration, and theory confirmation through analysis.

When using data you can both discover new patterns from the data or focus on confirming or falsifying current hypotheses on what data should show. Predictive analytics researches statistical models and attempts to find valuable data that can be used for forecasting or projecting trends or patterns.  

The book ‘Money Ball’ was about using data analytics for maximizing the monetary value of underpriced baseball skills in players. 

The Golden State Warriors currently uses data analytics for an edge in basketball. 

The fund Renaissance Technologies uses powerful computers and data analytics to find repeating historical  price patterns that had a trading edge to create some of the best long term returns in the history of the markets. 

In the financial world data analytics is primarily used for finding fundamental and technical patterns in the past price data with backtesting software that can be used to make money and create an edge. 

What is Data Analytics?
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