Alternative Data News. 16, December 2020
Finding sources and uses for alternative data can be difficult. At CloudQuant we regularly read and search the internet for new sources of data that can be used in our mission to find alpha signals and build quantitative trading strategies. We recognize that we are technology and data junkies so we wrote our own crawler that specifically seeks out web pages, posts, and news articles that give us a snapshot of what is going on in the world of Alt Data. The following is a collection of articles that we think you will find interesting from the past week.
Google Year in Search
CloudQuant Thoughts : It’s the end of the year, so a lot of data scientists are turning their attention backwards to the year that has passed…
Google Year in Search 2020 Top Search Terms
Tools: Excel and Tableau
By : Roshaan Khan www.reddit.com/user/informatica6
CloudQuant Thoughts : I’m not sure that Indian news stories are ranking that highly (but it is quite possible!). From the key at the top it suggest Roshaan doesn’t have a full account on Google Trends. A full account gets you the numbers, a free account just sets your search to max out at 100.
Hedge Funds Surge in November on Vaccine Optimism and US Election Results • Integrity Research
According to HFR, a Chicago-based hedge fund research firm, hedge funds in November posted their second strongest monthly gain on record driven by optimism around the availability and likely approval of multiple COVID-19 vaccines, and the results of the US election.
According to HFR, the HFRI 500 Fund Weighted Composite Index surged 4.6% during November, bringing the YTD 2020 return to 5.6%. The 3 year and 5 year annua…
2020-12-14 07:30:00+00:00 Read the full story…
Weighted Interest Score: 4.6322, Raw Interest Score: 2.3629,
Positive Sentiment: 0.5063, Negative Sentiment 0.2532
CloudQuant Thoughts : Interpreting consumer opinions and their effect upon stock prices, heck – even identifying which stock will be affected by a particular news article or sudden trend in social media, remains extremely difficult. CloudQuant recently took on a dataset from a firm which analyses Tweets, focusing on just this and nothing else. They are able to give numbers for mentions, positive indications, negative indications and likelihood to purchase. Head over to our press release for more info.
7 Winning (and Losing) Technology Job Categories in 2021
Despite the economic upheaval caused by the pandemic, David Foote, chief analyst of Foote Partners LLC, made a lot of surprisingly accurate predictions about the jobs and key skills that would increase in value during 2020. For example, the mass shift to remote work actually accelerated the demand for technologists with Big Data, artificial intelligence (A.I.) and cybersecurity skills, matching his prediction. With that in mind, what’s on tap for the coming year?
With few exceptions, the value of tech certifications (which declined further in 2020) will likely hold steady or continue to fall. Meanwhile, the further entwining of people, devices, content and services (or what Gartner calls the intelligent digital mesh) will increase the demand for technologists who possess the right combination of non-certified skills and experience. To keep your career on track, Foote referenced data from the firm’s latest “IT Skills and Certifications Pay Index” to forecast the roles and key skills that will increase in value (as well as those that might lose ground) in the coming year.
2020-12-15 00:00:00 Read the full story…
Weighted Interest Score: 3.3170, Raw Interest Score: 2.3551,
Positive Sentiment: 0.1186, Negative Sentiment 0.1017
CloudQuant Thoughts : No “BIG” surprises here! Big Data, Artificial Intelligence and Machine Learning top the list of gainers!
CloudQuant is a major provider of Alternative Data Sets, including a quite excellent ESG data set. For many of the datasets we provide we have taken the claims of the vendors and tested them on our publicly available Mariner Backtesting system, we produce White Papers detailing our results and even make the Python code we used in the analysis so you can re-run it yourself on Mariner.
AIMA CEO Jack Inglis sees hedge fund “renaissance” next year as ESG, blockchain and digitalisation accelerate changes
2021 will see an “acceleration of trends” across the hedge fund industry, according to Jack Inglis, CEO of the Alternative Investment Management Association, with the sector becoming more digitalised and more socially conscious, as managers play an “integral part” in the economic recovery following the coronavirus crisis.
Hedge funds are set for a “renaissance” next year as investor interest in the sector rebounds following 2020’s momentous events, driving a “major rethink on portfolio allocation” among clients.
“During the peak Covid-19 market volatility in the first half of 2020, hedge funds, on average, halved the losses incurred by equity markets and balanced portfolios,” Inglis said in a commentary this week.
2020-12-10 00:00:00 Read the full story…
Weighted Interest Score: 5.1797, Raw Interest Score: 2.2121,
Positive Sentiment: 0.1053, Negative Sentiment 0.1404
Morgan Stanley Investment Management launches ESG fixed income fund
Morgan Stanley Investment Management is rolling out a new ESG-focused fixed income fund, which aims to tap into sustainability themes by trading a range of ‘best ideas’ credit opportunities across the capital structure in developed and emerging markets.
The Morgan Stanley UK Sustainable Fixed Income Opportunities Fund will target risk-adjusted absolute returns using a sustainability-based top-down selection process. The portfolio will comprise an assortment of investment grade, high yield, emerging market, convertible, securitised and government bonds.
Specifically, the investment process aims to curb exposures to ESG (environmental, social, governance) risk and negative sustainability impacts by screening out controversial sectors such as weapons, tobacco, and certain fossil fuels, as well as international norms violations.
2020-12-14 00:00:00 Read the full story…
Weighted Interest Score: 3.8788, Raw Interest Score: 1.9363,
Positive Sentiment: 0.4437, Negative Sentiment 0.1210
ESG systematic investing without greenwashing – doing good while doing well
The ever-rising demand for ESG has not only been driving the need for standards and regulations, but also the need for consistency on ESG ratings. Investors are especially concerned that rather than accurately measuring a company’s reputational risk implied by its business conduct, the inconsistent ESG ratings between ESG data providers lead to greenwashing – either because firms can select the best score offered by various providers, or because the company itself provides self-disclosures that mask risk.
RepRisk builds its daily ESG research and signals exclusively on the actual ESG behaviour of a company as reported by more than 100,000 public sources.
Dr Heiko Bailer (pictured), Head of Quantitative Investments at RepRisk, a leading ESG data science firm, has been driving the systematic integration of actionable ESG signals across the investment process. Most importantly, he comments: “for successful integration into a wide variety of investment processes, ESG signals must be based on a consistent and relevant data-capturing process, be frequently updated, have sufficient history, and be transparent and customisable.”
2020-12-15 00:00:00 Read the full story…
Weighted Interest Score: 3.7919, Raw Interest Score: 1.7359,
Positive Sentiment: 0.1785, Negative Sentiment 0.1136
Capitalizing on ETF data: In conversation with Atom Finance
Atom Finance turned to Nasdaq APIs for ETF and fund data to help fuel their research platform. Learn more about their experience with Nasdaq’s data.
If you were an investor in the 80s, chances are good that you couldn’t do without a Bloomberg Terminal. The system burst onto the scene in 1982 and has remained in the investment industry’s toolkit ever since, alongside an ever-growing collection of datasets and analytics tools that help investment professionals make well-informed decisions.
Data used to be a tool accessible mostly to the well-funded investor. Now, data and other information is available to investors of all types via a myriad of platforms. Increasingly accessible, data is here for the long haul, but the concept of more and more information is not without its challenges.
In the case of ETF data, institutional investors may have access to data that is confined to a terminal or an otherwise inflexible format—a marked disadvantage for many investing use cases. Many individual investors don’t have access to the data in the first place. For those who have access to the relevant data, questions remain about its accuracy, timeliness and origin.
2020-12-15 17:50:28+00:00 Read the full story…
Weighted Interest Score: 6.3956, Raw Interest Score: 2.4306,
Positive Sentiment: 0.1910, Negative Sentiment 0.1215
TD Securities Invests in Data Services and Analytics
TD Securities Makes Strategic Investment in Data Services and Analytics to Accelerate its Digital Transformation Journey. Bloomberg selected to help enable data strategy : High-quality, comprehensive and integrated data that is accessible, shareable and utilized effectively across our TD Securities organization is critical to supporting the evolving needs of our clients.
TD Securities today announced an investment in data services and analytics using Bloomberg Enterprise Data content and services. Bloomberg is a global leader in providing business and financial data, news and insights. Access to its extensive catalog of comprehensive, market-leading datasets and robust data management tools will help strengthen TD Securities advanced analytics, AI and machine learning platforms.
2020-12-10 08:41:30-05:00 Read the full story…
Weighted Interest Score: 6.2765, Raw Interest Score: 2.8196,
Positive Sentiment: 0.4240, Negative Sentiment 0.1272
Contextualising alternative data is key to garnering true insights
The world has witnessed an unprecedented explosion of data over the last few years. Most of us will be familiar with the term Terabyte, which represents 1012 or 1 trillion bytes of data. But such is the data-drenched world in which we live today that Caltech estimates 463 Exabytes of data will be created, every day, by 2025. One Exabyte is 1018, equivalent to one quintillion bytes!
The numbers are mind-boggling and too much for our human brain to comprehend. For the asset management industry, finding ways to harness technology in a way that can bring a kernel of insight to investment portfolios, is likely to be the next significant phase of evolution, where data management will define the winners from the losers.
In its latest white paper entitled “The exponential pull of innovation”, SEI refers to it as the “Googlisation” of financial services. More than just a placeholder for the idea of big data, “Google plays the role of a reliable means of deriving utilitarian knowledge from data. It is emblematic of data abundance and our strides in using that data effectively,” the white paper suggests.
2020-12-07 12:30:00+00:00 Read the full story…
Survey Shows Increased Need for Data Skills in Finance
Survey reveals need for specialist data science skills in financial industry
- 90% of respondents are going to increase their data consumption over the next twelve months
- Over half (52%) stated generating meaningful insights from data is a strategic priority for their firm, with an extra 33% stating their firm is seeking to enhance their data intelligence
- Nearly half of respondents (41%) are anticipating increased demand for data science skills from their business over the next 12 months
There is an industry-wide need for specialist data science skills to match the growing appetite for meaningful data insights and greater data consumption, according to a survey by SIX among 113 representatives from buy-side and sell-side firms, exchanges, regulatory bodies and other organisations. The survey was conducted from 28thSeptember to 02nd November 2020 to check the pulse of the industry with regards to their views on data consumption, management, and analytics.
2020-12-09 09:59:10-05:00 Read the full story…
Weighted Interest Score: 4.0329, Raw Interest Score: 1.8630,
Positive Sentiment: 0.1644, Negative Sentiment 0.0822
Electra Introduces a Unified API for Its Data Aggregation Service
Electra Data’s unified API offers investment managers more efficient, flexible and adaptable access to any available investment accounting data
Electra Information Systems, Inc. (“Electra”), a leading provider of award-winning post-trade solutions for the buy-side investment management industry, has introduced a unified application programming interface (API) for its Electra Data aggregation service to help investment managers meet their evolving data aggregation and normalization requirements. The unified API provides firms with consolidated, on-demand access to investment accounting data including cash, transactions, and positions for reconciliation, or any data used for other post-trade operations functions through one API.
2020-12-15 00:00:00 Read the full story…
Weighted Interest Score: 3.7187, Raw Interest Score: 2.1250,
Positive Sentiment: 0.3795, Negative Sentiment 0.0253
SEC Adopts Rules to Modernize Key Market Infrastructure
SEC Adopts Rules to Modernize Key Market Infrastructure Responsible for Collecting, Consolidating, and Disseminating Equity Market Data
Fosters a competitive environment for core components of the national market system for the first time
The Securities and Exchange Commission today adopted rules to modernize the infrastructure for the collection, consolidation, and dissemination of market data for exchange-listed national market system stocks (“NMS market data”). This infrastructure has not been significantly updated since its initial implementation in the late 1970s. The adopted rules update and significantly expand the content of NMS market data to better meet the diverse needs of investors in today’s equity markets. The adopted rules also update the method by which NMS market data is consolidated and disseminated, by fostering a competitive environment and providing for a new decentralized model that promises reduced latency and other new efficiencies.
2020-12-09 14:10:44-05:00 Read the full story…
Weighted Interest Score: 3.4401, Raw Interest Score: 1.9262,
Positive Sentiment: 0.3147, Negative Sentiment 0.0763
How to Influence Data Quality Through Data Stewardship
To get value from data, data stewards must understand business requirements and apply them. When business ambiguity arises about best serving data stakeholders, data stewards need to know how to find out this information and with whom to speak. Then these data trustees influence Data Quality for the better by aligning fit for purpose with business needs.
Data stewards understand business standards’ frameworks when taking good care of data assets.
Data Governance, either formal or a non-invasive, reflects these structures and provides context and direction to these frameworks. When a data steward misunderstands the business framework and misapplies Data Governance, Data Quality suffers. Just as a martial arts practitioner in either Kung Fu, Karate, Capoeira, or Neo-Bartitsu needs to understand its concepts and context to best an opponent, data stewards should follow the rules and concepts making data fit for purpose.
2020-12-08 08:35:53+00:00 Read the full story…
Weighted Interest Score: 3.3510, Raw Interest Score: 1.7331,
Positive Sentiment: 0.3944, Negative Sentiment 0.1142
Efficient Ways To Measure The Performance Of Your Data Scientists
Data science teams are being set up in almost every office across departments. As a matter of fact, reports show a high adoption rate in India, especially after the pandemic. While these data teams have a lot of relevance, the cost of data scientists as a resource is very expensive.
Stakeholders, therefore, want to know whether their investment in data science is actually helping improve work processes and efficiencies, as they face difficulty in quantifying the benefits of the data teams.
The article lists efficient ways to measure the impact or performance of data scientists.
2020-12-15 12:30:00+00:00 Read the full story…
Weighted Interest Score: 3.2413, Raw Interest Score: 1.8178,
Positive Sentiment: 0.2847, Negative Sentiment 0.1752
Executive Education Course : Analytics for Decision Makers: Advanced Analytics
Have you sometimes looked at your data and wondered how you can use it to add value to your business? Have you perhaps read over a report from your data science team and wished for the confidence to turn its insights into optimal decisions? Do you want to leverage data analytics to optimize processes for your department and to spearhead evidence-based decision making in your company?
If so, this program is for you. In the age of digitalization and with progressively larger amounts of available data, managerial decision making is increasingly data-driven. The aim of this program is to help you leverage analytics for optimal decisions. While this is not a technical quantitative course, its focus is on building the thinking skills necessary for an informed and empowered user of analytics, so that you can convert data insights into business value.
2021-02-15 00:00:00 Read the full story…
Weighted Interest Score: 3.1542, Raw Interest Score: 1.7523,
Positive Sentiment: 0.1168, Negative Sentiment 0.0000
11 people who quit finance and lucked-in at Airbnb & Doordash
If you listen carefully in the investment banking divisions, technology teams and strats groups at investment banks this week, you’ll hear some deep sighs. These are the sighs of regret. They are the regrets of people who stayed in finance while others left, joined start-ups, and made a fortune from this week’s IPOs.
“I know some folks in their mid-20s who left hedge funds to work for Airbnb,” sighs one Goldman Sachs strat. “They’re multimillionaires now.”
For those who hung on in finance, it’s all a bit galling. You get paid well in banking, but you’re probably not going to make seven figure multiples anytime soon – especially if you’re in technology. Although the really massive money will only go to those at the top of pile, Airbnb’s initial valuation of $100bn+ and Doordash’s valuation of $73bn+ will also benefit employees who received pre-IPO stock as a form of payment. Plenty of those people used to work in finance.
We can’t guarantee that any of the names listed below is now destined for a life of leisure, but we’d suggest it’s a strong possibility given their tenure at the two companies.
2020-12-11 07:51:00-07:00 Read the full story…
Weighted Interest Score: 3.1019, Raw Interest Score: 1.5884,
Positive Sentiment: 0.1083, Negative Sentiment 0.1083
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