ExtractAlpha Launches Alternative Data Analytics Tool for Portfolio Managers

The provider of unique alternative data sets and predictive models for institutional investors has launched an alternative data analytics solution for portfolio managers and analysts so they can better understand their portfolio’s exposure to alternative Data-driven factors.

Going by the name of Insight, the solution applies rigor and creativity in the search for new sources of value and connects investors with interesting and unique new data sources to help them outperform, generating predictive insights and improved investment returns.

Vinesh Jha, founder and Chief Executive Officer at ExtractAlpha, commented: “When institutional investors use similar inputs in similar ways, it generally leads to correlated investment returns. However, those implementing an alternative data solution have realized how they can benefit from data science by adding alternative new data sources to their strategic toolbox. Using ExtractAlpha’s exclusive data and sophisticated analytics, investors can drill down into regulatory, political, and innovation events affecting a company, discover the detail on underlying scores and identify those with especially high or low scores and, therefore, quickly take advantage of alternative data strategies. Insight also scores thousands of stocks every day on a variety of tactical and sentiment factors to improve short-horizon trade timing.”

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As alternative data today plays a key role in the process of asset selection and allocation, portfolio managers and analysts compete for an edge in the market. Insight allows them to visualize their portfolio’s overall exposure and drill down into any stock to assess its exposure to ExtractAlpha’s alternative data factors and predictive models in order to quickly uncover the drivers of stock prices and earnings as well as to check the evolution of a stock’s score over time and evaluate good entry or exit points.

Insight also provides custom watchlist monitoring for risk and opportunities from a tactical, cross-asset and ESG perspective.

In November 2017, Deloitte estimated that spending on alternative data may exceed $7 billion USD by 2020, with an annual growth rate of 21 percent. The industry continuously seeks ways to evaluate an endless supply of information to drive new insights, investment ideas and deliver alpha.

Quandl, one of the world’s leading provider of alternative and core financial data was acquired by Nasdaq in late 2018 in order to combine Quandl with its existing Analytics Hub business within Global Information Services. The firm’s strategy is to maximize opportunities as a technology and analytics provider to capital markets, as well as its capital deployment and return on investment capital objectives.

Quandl offers a global database of alternative, financial and public data, including information on capital markets, energy, shipping, healthcare, education, demography, economics and society. The alternative data and core financial data comes from over 350 sources and is distributed to more than 30,000 active monthly users.