Alternative Data News | Neudata

Using alternative data to assess employment trends

We summarise an economic study that constructs coincident employment indices with high-frequency data to identify trends in US labour market during the pandemic. Given the significant lags in traditional employment statistics, the paper finds value in using alternative data sources to gain critical information on changing labour market dynamics in real-time.

Literature Review 25 Jan 2022
Compliance in the age of alternative data

We summarise a 2021 white paper that explores developments within alternative data and compliance. The paper also recommends several vendor vetting processes and factors to consider when assessing third-party alternative datasets.

Literature Review 11 Jan 2022
New machine learning method to select fundamental factors

We summarize a 2020 academic paper that proposes a new ML-based selection method that claims to evaluate the contribution of factors to asset pricing in a superior manner than Fama-French 3- and 5-factor models.

Literature Review 28 Dec 2021
Economic Policy Uncertainty and Chinese Stock Price Volatility

We highlight key findings from an academic paper that compared the predicting power of different news-based Economic Policy Uncertainty Indices for gauging 1) the stock price behavior of Chinese public firms and 2) economic trends in China.

Literature Review 15 Dec 2021
Hedging climate risk: news-based approach

We summarise a study that explores a strategy of dynamically hedging long-term exposure to climate risk by hedging news about climate change over the short term.

Literature Review 30 Nov 2021
2021: The state of AI/ML in financial services

We summarise a 2021 research that interviewed data leaders and practitioners in the financial services on their in-house AI/ML adoption and development.

Literature Review 16 Nov 2021
Cyber breaches along supply chains: impacts on equity returns

We summarise a study that evaluates the impact of cyber risks along the supply chain, on listed companies’ equity returns. The frequency, severity, and impact on share prices of cyber breaches are analysed. First-hand (homegrown) and third-party induced cyber breaches are both included.

Literature Review 3 Nov 2021
What have systematic investors learned from using alternative data?

We summarise a 2021 whitepaper from the systematic active equity team of a global investment manager, which discusses the lessons that their team has learned using alternative data. The paper also highlights the three “edges” they believe alternative data offers in active equity investing.

Literature Review 20 Oct 2021
Can ESG ratings consensus predict future ESG news and stock prices?

We summarise a study that analyses whether ESG ratings and non-consensus between ratings agencies can be used to predict future ESG news sentiment and the associated stock market reaction.

Literature Review 6 Oct 2021
Identifying retail investor activity using public order flow data

With the pandemic driving a surge in retail investing activity, we have seen increased demand from readers for alternative data that can be used to monitor this activity. We highlight a research paper that introduces a novel methodology for inferring retail trades based on order flow data.

Literature Review 21 Sep 2021

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