Empirical Research Partners’ Take on Big Data: Media Sentiment - Useful Around the World

Empirical Research Partners and RavenPack | October 01, 2018

Peter Hafez, our Chief Data Scientist, highlights the key results and comments on the recent reports from Empirical Research Partners.

Across two reports, Empirical Research Partners test the efficacy of media sentiment applied to developed world markets with a special focus on fundamental investors. As part of their study, they considered eight different news sentiment data providers. Only two providers added meaningful value to their stock selection process, RavenPack being one of them.

Below, I summarize their key findings:

There is value in Big Data for investors
RavenPack data fares better
Media sentiment doesn’t just duplicate what is already known about stocks
Media sentiment provides more color to earnings expectations
Media sentiment is particularly helpful in timing entry into value stocks
Big Data can also aid in failure modeling
Empirical Research Partners were able to improve their internal (multi-factor) core models in the US and internationally

We will process your personal data with the purpose of managing your personal account on RavenPack and offering our services. You can exercise your rights of access, rectification, erasure, restriction of processing, data portability and objection by emailing us at privacy@ravenpack.com. For more information, you can check out our Privacy Policy.

Data Insights

December 1, 2022

Using Sentiment Data to Build an Inflation-based Allocation Strategy

High inflation has returned in developed markets after decades of lying low. In our latest paper, we show how to build an inflation-based asset allocation strategy using sentiment data and we illustrate that sentiment-based strategies outperform models that depend merely on past observed inflation values.

November 8, 2022

RavenPack Research Symposium 2022 - key takeaways

This year's RavenPack Research Symposium brought two intense days of knowledge sharing in London and New York, from 25 top experts in natural language processing, quantitative investing and machine learning. Together, we explored how firms can leverage new language models to generate alpha, better manage risk and respond to calls for more sustainable investment practices.

October 24, 2022

Alpha Generation with RavenPack Job Analytics

Human capital is at the heart of value creation. Our latest research demonstrates how unprecedented workforce insights, sourced from over 200 million job postings, can generate more alpha.