Three-year daily financial news study increases alpha capability
Global financial markets’ newest alternative data and analytics application RelateTheNews continues to expand its alpha generating sentiment and natural language analytics data library to meet the high demand for proven alternative data by global quantitative hedge funds, quantamental managers and active asset management firms.
The latest dataset from RelateTheNews (RTN) is the result of a three-year daily financial news study and will be available on a subscription basis through(RTN). In addition to the new data set, this research and innovation marks a significant increase in the accuracy of financial company identification while also extending RTN’s core algorithmic capabilities of processing market specific sentiment mined data across publicly available news sources.
Through the application of RTN’s proprietary natural language processing (NLP) algorithms, knowledge from their clients and the continuous AI mining of over 700,000 financial news articles - this new set of sentiment data delivers significant alpha capability.
“Since day one we have been dedicated to identifying and transforming big data in the form of financial news and other market relevant text into actionable insights for global markets. This latest data set is exciting as it expands our ability to create actionable alpha markers, increases our speed and the volume of data processed. This is an important step in our ongoing path to create additive sources of alpha for the active management market which is in need of data to drive alpha and the importance of active management over the growing interest in passive strategies” - Tim Decker CEO of RelateTheNews
Domain specific NLP meets the rapidly growing need for alternative market data
Many NLP solutions analyze sentiment for the entire body of their base language, U.S. English for example, which can cause ambiguity and misidentification of meaning when applied in domain specific areas such as the financial markets. RTN’s sentiment analysis utilizes market and business specific NLP thereby reducing ambiguous sentiment identification while providing specific and relevant insights into corporate or market-centric activities in the news. Global hedge funds and asset management firms utilizing quantitative approaches in their investment decision-making are benefiting from this focused transformation of news into actionable data. Demand continues to grow for alternative market data as more firms are racing to compete with the advances in AI and the ever expanding embrace of quantitative technologies to drive greater alpha. The future will see increased adoption of these alternative data sets across the asset management spectrum as well as utilization in portfolio selection and risk management phases of the investment life-cycle.
Client focused data delivery and extensive trial data
Global hedge funds put this research data to use in making portfolio selection and trading decisions on a daily and intra-day basis to drive alpha for their U.S. equity, ETF and other equity derivatives strategies. By providing over 3 years of sentiment data clients have the ability to do in-sample and out of sample backtesting to identify the alpha generating results driven by RelateTheNews data with their strategies. Additionally, as a FinTech company RelateTheNews works diligently to use the latest technologies to accelerate the onboarding and integration of their sentiment data into a client’s internal systems empowering them to achieve results in the markets quickly and at a lower operational cost. These capabilities and innovation are the direct result of a diligent focus on the needs of clients as well as core principles of transforming data into actionable insights.
RelateTheNews, an Interconnect Analytics, Inc. company, provides global capital market participants with insightful and actionable data created through the transformation of news into quantified sentiment signals. Founded in 2013, RelateTheNews provides information and insight resources critical to the global hedge fund and asset management industry through a variety of services - including data as a service(DaaS), platform as a service (PaaS) and software as a service (SaaS) which are essential to the entire investment life-cycle and gaining a market edge.
Looking to drive alpha from the new RelateTheNews sentiment analytics data? Contact us now