Alternative Data News and Insight

Neudata Intelligence

Is there alpha in combining ESG scores with sustainability sentiment?

We highlight key findings from a Harvard Business School study that combines traditional ESG scores with alternative data sources that measure public sentiment momentum on corporate sustainability performance. The study finds that an ESG factor that goes long on firms with high or improving ESG performance and negative sentiment momentum, and short on firms with low or decreasing ESG performance and positive sentiment momentum delivers significant positive alpha.

Neudata Intelligence

Crowding and Alternative Data: our analysis and outlook

As the use of alternative data within the investment community grows more prevalent, this prompts questions on dataset crowding and its implications for alpha generation. While opinions may be divided on the significance of buy-side client numbers in evaluating a dataset, an analysis of dataset crowding serves as an interesting source of insight into the interplay between supply and demand for different data types. In the following analysis, we explore: (1) levels of dataset crowding across different dataset types, (2) supply and demand for four dataset types: web scraping, web & app tracking, ESG, and location, (3) the types of data that will be most valued by investors in the future.

Neudata Intelligence

The Story of Alternative Data in Japan

According to industry trends (both anecdotal and empirical), the Japanese alternative data landscape is generally seen to be at an earlier stage of development than its European and US counterparts. In the following piece, we shed some light on the state of the market by looking at (1) domestic demand for alternative data (2) challenges faced by local data providers, and (3) some unique sources of consumer spending data from this region.

Neudata Intelligence

Crude oil: Deriving alpha from satellite data

There are many factors that impact the price of crude oil, such as production, imports/exports, and geopolitical events. However, it is widely accepted that inventory levels are one of the most crucial drivers of the asset’s price in the market. In this Intelligence report, we discuss whether crude oil storage estimates, specifically those obtained through satellites, can generate alpha to institutional investors interested in gaining an edge on pricing.