Data beats opinion >>> weekly update on alternative data

1. Dataset of the week: Geo-location data provider.

2. Lessons Learnt: Constructing Eagle Alpha’s UK Jobs Index.

3. Events: We are a sponsor of the Learn 2 Quant event in NYC next Tuesday.

6. Dataset access: A global trade nowcasting data provider is doing meetings in London on 26-30th June. Contact us to book meetings.

5. Articles of the week: Schonfeld’s CIO on the most valuable skills required at a hedge fund, GIC’s COO on alternative data for real estate, IBM launches Watson for financial regulation.

6. Update on Eagle Alpha’s solution.

 

1. Dataset of the week: Geo-location data provider.

Vendor Overview: This provider collects location and foot traffic data from 180 million mobile devices both actively and passively. The passive data collection is done with the use of mobile app providers (e.g. weather apps) and the vendor complies with regional specific and country specific laws.

Dataset Overview:

  • History: 15 months.
  • Location Data Geography: Global.
  • Foot Traffic Data: U.S, Canada, Mexico, U.K., Germany, Italy.
  • Delivery: API or CSV.

The rest of this dataset profile is available to clients of our Data Sourcing package.


2. Lessons Learnt: Constructing Eagle Alpha’s UK Jobs Index.

Eagle Alpha analysts have spent over three years finding the best way to use online search data to predict economic indicators. Eagle Alpha has devised its own proprietary methodology that leverages all relevant academic research, as well as accepted best practices in the field.

The 5 steps involved in generating Eagle Alpha’s online search indices are as follows:

1. Generate relevant search terms: A set of keywords relating to the chosen subject are identified. We continuously examine thousands of terms for both relevancy and predictive value of search volume with the relevant economic series.

2. Find search volume for each term: For each of the term, the search volume index (SVI) is obtained using online search volume dating back to 2004.

3. Clean the data: Search volume data is then cleaned using the following steps:

  • Those terms with insufficient search volume to generate accurate information are removed.
  • The data is winsorized to adjust for outliers.
  • The data is seasonally adjusted using the X-13-ARIMA-SEATS adjustment methodology developed by the United States Census Bureau.

The rest of this lesson learnt is available to clients of our Thought Leadership package.


3. Events 

  • Last week we spoke at Citi’s quant conference. Contact us for the presentation.
  • We are a sponsor of the Learn 2 Quant event in NYC next Tuesday.
  • We are working on a few more events before the summer sets in, including an event in NYC to discuss how to build and manage teams.


4. Dataset Access

  • Pilot fishing: we are currently obtaining feedback from clients on a potential ticker level dataset based on credit and debit card data. Only clients are invited to pilot fishing meetings.
  • Roadshows: 1) A global trade nowcasting data provider is doing meetings in London on 26-30th June; 2) UK consumer transaction dataset is doing meetings in London next week. Contact us to book meetings.
  • Events: the next data showcase events in New York and London are being scheduled.


5. Articles of the week

A $16B hedge fund CIO explains what it takes to work with alternative data.

Big Data, Technology Increasingly Drive Decision Making for Investors.

IBM launches Watson for financial regulation.


6. Update on Eagle Alpha’s solution

There are 6 parts to our solution:

1. Teach-ins: we now also offer set-up advisory.

2. Bespoke Projects: submit a research question and we will prepare a proposal.

3. Thought Leadership: clients use our lessons learnt to save time.

4. Data Insights: we have relaunched this on our website to focus more on indicators.

5. Analytical Tools: clients use one of our tools to track expert commentary.

6. Data Sourcing: a key pain point is what datasets to prioritize. We advise clients on the most relevant datasets for their needs.

Please forward this newsletter to a colleague,

The Eagle Alpha Team