Alternative Data Newsletter – December 7th, 2017

1. Data Sourcing: Our “Alternative Data Showcase Week” in NYC was a great success. In 2018 we will organise three major data showcase events: London in April, Hong Kong in September and New York in December.

2. Analytical Tools: Eagle Alpha’s web query tool used to analyse the impact of the loot box scandal on the gaming industry.

3. Data Insights Q3 lookback: 100% hit rate on high conviction signals, 67% overall hit rate.

4. Bespoke Projects: Which small cap stocks in my industry show deteriorating credit quality and increased traffic to their web pages on a credit risk management website?

5. Innovation Center: This week we published the 3rd Edition of our “Alternative Data: Use Cases” report. Please download a copy from www.eaglealpha.com.

6. Featured articles: 1) Credit Suisse charts the evolution of artificial intelligence and investing; 2) The Ultimate Guide to Thriving in Data Science: Quantitative Researcher; 3) Financial big data: The traces of trillions in economic activity.

 

 

1. Data Sourcing

  • Database: Featured dataset – credit score data provider.

Credit score data provider delivers predictive stress scores for credit, supply chain and financial professionals. Credit ratings are prepared for over 57,000 public companies worldwide and can be used to analyze equities with high bankruptcy risks.

Aggregate crowd-sourced usage data from the vendor’s subscribers, credit managers and supply chain professionals from Fortune 1000 companies, is incorporated during the construction of stress scores. The provider found distinct behavioural patterns when its subscribers are concerned with certain companies and investigate them more closely.

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

Our database has detailed profiles on 669 providers and is available via an API. Contact us for more information – enquiries@eaglealpha.com.

  • Exclusive Datasets: In Q1 2018 we are launching a consumer transaction dataset that we have built. Contact us if you would like to provide us with early feedback on the dataset.
  • Advisory example: We need to understand European hotel occupancy, pricing and booking curves. Please advise us if these KPI’s can be tracked and which dataset offers the best solution.
  • Events: Our “Alternative Data Showcase Week” in NYC was a great success. Feedback from buyside firms and data vendors was very positive. In 2018 we will organise three major data showcase events: London in April, Hong Kong in September and New York in December. Contact us to learn more.
  • 1-on-1s: Over 250 meetings held so far. Geo-location, trade and employment datasets were among the most popular categories. We will be opening calendars early next week for all vendors that exhibited at the event for follow up calls. Going forward we will be using our platform to book in all 1-on-1s.


2. Analytical Tools

At the end of November 2017, Eagle Alpha published a fundamental report on the gaming market. The report focused on the impact of the loot box scandal on the gaming industry. Eagle Alpha leveraged our web query tool which analyses over 90 million web sources to quantify certain aspects of the scandal.

The data shows that since September there has been a big spike in loot boxes association with gambling which has led to the net sentiment surrounding loot boxes. Of the publishers analysed Electronic Arts and Activision saw their Twitter sentiment fall dramatically in November.

3. Data Insights Q3 Lookback: 100% Hit Rate on High Conviction Signals, 67% Overall Hit Rate.

Ahead of Q3 earnings season Eagle Alpha’s Data Insights team published 30 signals across 24 US Consumer and Tech stocks. Of these 30 signals, 20 proved accurate, or a hit rate of 67%, and five signals missed. The outcome for five of the signals was neutral, or too soon to call. Five of the 30 of the calls were high conviction signals based on backtested predictive models. 100% of these signals proved accurate.

Of the 30 signals, 18 were for consumer stocks and 12 were for tech stocks. The hit rate was identical for both sectors at 67%.

Analyzing the results by dataset we observe a 100% hit rate for the five signals based on email receipt data, 67% for three signals based on crawled data, 57% hit rate for seven signals based on employment data, and 57% hit rate for the 21 signals based on search data.

The five stocks with the largest move on earnings, from the date of our published report, were Express 71%, Foot Locker 34%, Square 27%, GrubHub 19% and Papa John’s International -17%. We correctly called the direction of beat/miss for four of these five stocks. Papa Johns was the stock we called incorrectly.

4. Bespoke Projects

Which small cap stocks in my industry show deteriorating credit quality and increased traffic to their web pages on a credit risk management website?How do these trends compare to trends in the number of news articles and social media comments about these companies?

Contact us to receive examples of how alternative data can address this research question – enquiries@eaglealpha.com.

Previous examples of research questions include:

  • How can alternative data be used to analyze US shopping center REITs?
  • What can Eagle Alpha’s employment dataset tell us about demand for workers who are skilled in working with Tableau or Adobe software products?
  • How can alternative data provide insights into usage trends of PayPal and Square payments?


5. Innovation Center

  • Event recaps. We have been part of several events over the last few weeks: JPMorgan’s Fintech event, our one day event in London for equity investors, our “Alternative Data Showcase Week” and Newsweek’s event. In two weeks we will publish a summary of the key highlights to these events – this will be made available to clients of our Innovation Center offering.
  • Use Cases. This week we published the 3rd Edition of our “Alternative Data: Use Cases” report. Please download a copy from www.eaglealpha.com.


6. Featured articles

Credit Suisse charts the evolution of artificial intelligence and investing.

The Ultimate Guide to Thriving in Data Science: Quantitative Researcher.

Financial big data: The traces of trillions in economic activity.

Data beats opinion,

Eagle Alpha