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.
Alternative Data News and Insight
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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. -
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. -
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. -
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. -
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. -
How do ESG considerations impact corporate bonds?
We summarize a study that investigated the impact of ESG screening on fixed income asset pricing, and also explored whether ESG data offers investors an information advantage. -
The workplace factors that drive attrition – lessons for investors
The rate of workforce resignations has steadily increased since the 2007/08 financial crisis. Predicting attrition has never been more critical - excessive turnover can harm business performance as it impedes productivity, increases operational costs and reduces company morale. In this report, we summarise a study that identifies the key drivers of attrition using alternative data sources. -
How does negative news sentiment impact bond yield spreads?
We summarise a recent academic work that investigated how emotions expressed in news can help predict changes in European bond yield spreads. -
The Role of Chinese Retail Investors in Information Discovery and Dissemination
Chinese retail investors are well-known for their speculative and irrational behavior, and their informational role has often been perceived as “questionable.” We highlight the findings of a research paper that examines the role of retail investors in information discovery and dissemination based on NLP-enabled text analysis.
