A data mining application via pairs trading strategy on portfolio construction at Istanbul Stock Exchange

Today, changes in data sources varying from taking notes to satellites having remote sensing capability cause data streaming to accelerate, data piles to increase and make data be more complex. Hence, in data compilation, process and in interpretation are encountered difficulties. Therefore, it is needed to develop automatic systems to compile data from data sources, make clear for interpretation and put into action.Data mining is a process to provide a system that compiles, virtualizes and analysis the streaming data and adapt to decision process.In this study, a data mining system is created to form a portfolio with the stocks from Istanbul Stock Exchange using pairs trading strategy for stock selection and buy ? sell timing.