Alternative Data News and Insight

We summarise backtesting results directly sourced from one of our data providers, explaining how South Korean export data can be used as a leading indicator of company revenue. Specifically, this alternative dataset identifies correlations for companies that export products with a South Korean dominance.

Many investment managers question the link between ESG performance and company earnings. To compound the issue, at Neudata we have noticed that ESG research agencies often find conflicting results in their analysis. So why are there discrepancies? And will finding the cause of polarised research outcomes provide us with a more accurate picture of what ESG is good for? We also outline several applicable alternative data offerings.

We take one of the most high-profile methane gas leaks as a use case example to establish whether access to such alternative data can be used ahead of major share price moves. The example demonstrates the potential alpha in detecting unintended methane emissions that have financially material consequences.

We summarise findings directly sourced from one of our alternative data providers explaining how product pricing and markdown data anticipated the difficulties the Tod's brand was having in 2017. Specifically, this dataset identifies 1) low growth in product lines other than footwear, 2) a high level of promotions on products, and 3) brand value dilution due to a vast presence in off-price channels.

Across Neudata's coverage universe we evaluate which alternative data providers could have helped investors detect the group’s collapse. We describe six very different offerings and the read-across between the output from their data and Carillion. Where possible, we have also asked each data provider for their own thoughts on this specific case study.

Using alternative data sourced from a provider on Neudata's platform, this study analyses foot traffic across the top 7 US retail stores over the 2017 holiday period (Walmart, Target, The Home Depot, Lowe’s Home Improvement, Verizon Wireless, Sprint and Best Buy). We identify what we believe to be the most interesting conclusions and limitations of the study.

And could one have reached the same conclusion with less effort? Earlier this month an analyst at Jeffries published a report regarding online estate agent Purplebricks which was at odds with the CEO’s comments. Specifically, the CEO had stated that 88% of Purplebricks’ customers sold their homes within 10 months. Conversely, Jeffries suggested the actual figure may be closer to 51%. Perhaps unsurprisingly, Purplebricks shares fell 7% on the day the report was published.

We highlight findings from one of our hotel data sources on trends in 2017 and what to expect in 2018. We believe these findings could give helpful insights for macro investors but for those with a stock-specific focus we also recommend readers take a look at the three reports we have published (see links below). Lastly, we recommend hotel occupancy indicators offered by another alternative data provider.

A blast at Austria’s Baumgarten import hub cut gas flows from Russia and forced Italy to declare a day-long state of emergency for energy supplies. We list three event-based alternative data providers who helped ensure their clients were among the first in the investor world to be aware of such events.