New Technologies for Traditional Asset Management
Asset managers are challenged by emerging technologies like artificial intelligence, machine learning and other big data related methods. As more and more portfolios are partially or completely run by the computer discretionary managers and traditional quantitative strategies need to consider the integration of alternative models into their investment decisions to stay competitive in terms of risk management and cost. Competitors relying on computerized strategies not only have an advantage in speed and cost but also in performance.
Quantitative Models Based on Alternative Data
A broad variety of well-known quantitative strategies exist which look at classic fundamental data like price/earnings ratios or historic prices. However, as these strategies are adopted by many market participants the additional value of integrating those into a portfolio is very limited. The latest trend in asset management is therefore the search for alternative data sources which have not yet been tapped by the broad market.
Meta Data from Online Buzz
Internet communities where users discuss about financial markets can be a source of alternative data. Examples of such communities are stocktwits.com (USA), go.guidants.com (Germany) and Xueqiu (China). StockPulse taps these and other sources for valuable meta data like opinions, key events, user sentiments or key personal. Unstructured texts become actionable information by transforming them into quantified data.
The StockPulse research team continuously publishes reports on how to optimize existing portfolios with the integration of quantitative trading models based on analytics from social media and online communities. We provide means to integrate these and other unpublished models through our Shadow NAV.
- Quant models for various asset classes
- Sharpe ratios of 1.5+
- Uncorrelated with existing portfolios
- Betas of close to zero
- Tested in real-money trading and extensive analyses of historic data
- Ready to be used „out-of-the-box“
- Available for instruments DAX Future, FTSE Future, Gold Future, German stocks, U.S. stocks