--- title: 'Example workflow (`network`/`sna` edition)' subtitle: 'From data retrieval to a `network` object' author: | | Fabio Ashtar Telarico* | University of Ljubljana, FDV | *Fabio-Ashtar.Telarico@fdv.uni-lj.si output: rmarkdown::html_vignette: toc: yes vignette: > %\VignetteIndexEntry{workflow-network_financial} %\VignetteEngine{knitr::knitr} %\VignetteEncoding{UTF-8} --- ```{r, include = FALSE} knitr::opts_chunk$set( collapse = TRUE, comment = "#>" ) options( rmarkdown.html_vignette.check_title = FALSE ) library(FinNet) library(markdown) ``` # Introduction For years now, authors and analysts have worked on financial data using *ad-hoc* tools or programming languages other than `R`. So, the package `FinNet` was born to provide all `R` users with the ability to study financial networks with a set of tool especially designed to this purpose. Specifically, `FinNet` offers both brand new tools and an interface to the almost limitless capabilities of `igraph` and `network`. This vignette illustrates how to: 1. Retrieve the desired data using [`yahoofinancer`](https://CRAN.R-project.org/package=yahoofinancer ); 2. Create the firm-firm (FF) matrix; 3. Create the corresponding graph; 4. Plot it with smart, nice-looking defaults. # 1. Data retrieval After having identified the firms of interest, the package can fetch all information on them as long as `yahoofinancer` is available. Otherwise, built-in data can be used: ```{r workflow_1, echo=TRUE} # Check if `yahoofinancer` is installed isTRUE(requireNamespace('yahoofinancer', quietly = TRUE)) # Create a list of the desired firms data('firms_US') ``` ```{r clean, echo=FALSE, include=FALSE} firms <- firms_US rm(firms_US) ``` # 2. Matrix construction There are many function in the **`FF` function family** to rapidly build an adjacency matrix. In this step, `FF.norm.ownership()` will construct a normalised-valued matrix of common ownership ```{r workflow_3, echo=TRUE} # Identify common-ownership relations in a firm-firm matrix FF <- FF.norm.ownership(firms) ``` # 3. Graphing A graph can be obtained easily using `FF.net()`, which include **two preset aesthetics**: 'simple' and 'nice' ```{r workflow_4, echo=TRUE} # Create a simple-looking graph net <- FF.net(FF, aesthetic = 'simple') ``` Some checks using the S3 methods implemented for `financial_matrix` objects and the extension of some `igraph` functions allow to verify the correctness of the graph: ```{r checks, echo=TRUE} # The order of the graph equals the number of rows in the FF matrix network.size(net) == nrow(FF) # The names of its vertex match the row names of the FF matrix vertex.names(net) == rownames(FF) # Plot it plot_network(net, displaylabels = TRUE, vertex.cex = 3, edge.lwd = 6) ``` # 4. Plotting using default *nice* aesthetics The 'nice' defaults are more indicated for a visual inspection of the network. net ```{r workflow_5, echo=TRUE} # Load dataset data('firms_BKB') # Identify common-ownership relations in a firm-firm matrix FF <- FF(firms_BKB, who = 'own', ties = 'naive', Matrix = TRUE) # Create a nice-looking graph net <- FF.net(FF, aesthetic = 'nice') # Plot it plot_network(net, displaylabels = FALSE, edge.col = 'darkgray', vertex.cex = 3, edge.lwd = 1) ```