Analysing ‘cheap talk’ in climate commitments
We summarise a study that employs machine learning techniques to analyse corporate commitments to climate actions in annual reports to identify greenwashing.
Alternative Data News and Insight
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Is social media sentiment data useful?
We summarise a 2022 research article that interviewed professionals within investment management, either utilising or monetising alternative data - and, in particular, their thoughts on social media-based sentiment analysis. -
Capital flows and FX volatility: an inevitable symbiosis
We summarise a 2021 research paper that uses EPFR data on portfolio flows to analyse the relationship between capital flow volatility and currency exchange rate (FX) volatility in advanced and emerging markets. In addition to summarizing key findings, we also pinpoint the key datasets that may be used to track cross-border capital flows and relative macroeconomic indicators. -
Projections, reservations, realities: insights from the investment community
We summarise a 2021 research report that surveyed investment organisations and their alternative data usage. The paper discusses developments in alternative data adoption since 2019, and the changes in the market for 2022. -
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. -
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. -
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. -
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. -
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. -
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.
