An overview of StarMine Combined Credit Risk Model
- The StarMine Combined Credit Risk Model (CCR) integrates insights from multiple credit risk models, including Structural, SmartRatios, and Text Mining, to provide a comprehensive estimate of corporate credit risk.
- By drawing from various independent data sources such as equity markets, analyst forecasts, financial statements, and textual document analysis, and emphasizing the most relevant inputs for each company, StarMine CCR delivers robust predictions and evaluations of credit risk, surpassing the accuracy of any single data source.
- The CCR model employs a logistic regression framework. The weights assigned to the Text Mining model and the other two models are adjusted based on the volume of textual information available for a particular company, with the Text Mining model gaining more weight as text volume increases. This model estimates the likelihood that a company might default within the next 12 months.
KEY FACTS
What you get with StarMine Combined Credit Risk Model
The StarMine Combined Credit Risk Model (CCR) integrates data from the StarMine Structural, SmartRatios, and Text Mining Credit Risk Models to provide a comprehensive corporate credit risk estimate.
By leveraging multiple independent data sources – including equity market data, analyst forecasts and financial statements, and linguistic analysis of significant documents – and prioritizing the most relevant inputs for each specific company, the CCR model delivers highly accurate default predictions and credit risk evaluations.
The CCR model employs a logistic regression framework.
The weighting assigned to the Text Mining model, as well as to the other two models, is influenced by the amount of text available on a given company, with the Text Mining model's weight increasing as the text volume grows.
This model calculates the likelihood of a company defaulting within the next 12 months.
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