State Street curates unstructured data for investor insights
27 September 2016 | 1939 views | 0
Source: State Street
State Street Corporation (NYSE:STT) today announced the launch of State Street MediaStats, quantitative investment insights derived from digital media and other large consumer datasets.
The new solution collects unstructured data from more than 30,000 curated sources as well as other “Big Data” sources to quantify leading indicators of market behavior with respect to price and risk. Company-level insights can be aggregated to understand broader industry and macroeconomic trends.
State Street partner MKT MediaStats, LLC was founded by Gideon Ozik, affiliate professor at École des Hautes Etudes Commerciales du Nord (EDHEC) Business School and former hedge fund manager at Société Générale; Professor Ronnie Sadka, chair of the Finance Department at Boston College’s Carroll School of Management; Hadar Shezifi, technology entrepreneur and former architect at Neustar; and Professor Ken Froot, of Harvard Business School, who is also a founding partner of State Street Associates and FDO Partners.
“As the number of data sources available to investors grows, so will the need for efficient consumption of large bodies of information that can be used to generate market insights,” said Jessica Donohue, chief innovation officer for State Street Global Exchange. “Academic research shows that media has a measurable impact on asset price changes. State Street MediaStats scours traditional media, social media, and corporate communications to understand how, and how often, publicly-traded companies are being discussed. By building actionable indicators, we can help our clients analyze this information faster to enhance their investment decisions.”
State Street MediaStats’ Range of Solutions:
Earnings Prediction Technology, which analyzes large sets of consumer data to gauge interest in large retail firms. These digital patterns, reflective of consumer behavior in the real economy, can provide investors with an additional, distilled input to formulate quarterly earnings estimates.
Media Indicators that provide insights into stock price changes using proprietary algorithms to measure abnormal intensity, conditional sentiment and disagreement surrounding individual companies in media coverage. The suite also includes linkages indicators, which gauge the strength and impact of inter-company relationships based on co-mentions in the media.
“Investors have traditionally relied on the same data sources to build investment strategies,” said Ozik. “Recent innovations in information technology provide a unique opportunity to enhance investor knowledge and a distinct, uncorrelated perspective on financial assets based on vast amounts of new data sources.”
“These new solutions will help our clients scale their ability to extract accurate, valuable and predictive insights from the massive amounts of unstructured data found in the media,” continued Donohue.
The State Street MediaStats indicators build on the capabilities of State Street’s academic think tank, State Street Associates (SSA), a division of State Street Global Exchange. SSA bridges the worlds of financial theory and practice, develops proprietary investment indicators, differentiated analytics applications and tailored investment strategies for institutional investors around the world.