Book description
The first and only book to systematically address methodologies and processes of leveraging non-traditional information sources in the context of investing and risk management
Harnessing non-traditional data sources to generate alpha, analyze markets, and forecast risk is a subject of intense interest for financial professionals. A growing number of regularly-held conferences on alternative data are being established, complemented by an upsurge in new papers on the subject. Alternative data is starting to be steadily incorporated by conventional institutional investors and risk managers throughout the financial world. Methodologies to analyze and extract value from alternative data, guidance on how to source data and integrate data flows within existing systems is currently not treated in literature. Filling this significant gap in knowledge, The Book of Alternative Data is the first and only book to offer a coherent, systematic treatment of the subject.
This groundbreaking volume provides readers with a roadmap for navigating the complexities of an array of alternative data sources, and delivers the appropriate techniques to analyze them. The authors—leading experts in financial modeling, machine learning, and quantitative research and analytics—employ a step-by-step approach to guide readers through the dense jungle of generated data. A first-of-its kind treatment of alternative data types, sources, and methodologies, this innovative book:
- Provides an integrated modeling approach to extract value from multiple types of datasets
- Treats the processes needed to make alternative data signals operational
- Helps investors and risk managers rethink how they engage with alternative datasets
- Features practical use case studies in many different financial markets and real-world techniques
- Describes how to avoid potential pitfalls and missteps in starting the alternative data journey
- Explains how to integrate information from different datasets to maximize informational value
The Book of Alternative Data is an indispensable resource for anyone wishing to analyze or monetize different non-traditional datasets, including Chief Investment Officers, Chief Risk Officers, risk professionals, investment professionals, traders, economists, and machine learning developers and users.
Table of contents
- Cover
- Preface
- Acknowledgments
-
PART 1: Introduction and Theory
-
CHAPTER 1: Alternative Data: The Lay of the Land
- 1.1 INTRODUCTION
- 1.2 WHAT IS “ALTERNATIVE DATA”?
- 1.3 SEGMENTATION OF ALTERNATIVE DATA
- 1.4 THE MANY VS OF BIG DATA
- 1.5 WHY ALTERNATIVE DATA?
- 1.6 WHO IS USING ALTERNATIVE DATA?
- 1.7 CAPACITY OF A STRATEGY AND ALTERNATIVE DATA
- 1.8 ALTERNATIVE DATA DIMENSIONS
- 1.9 WHO ARE THE ALTERNATIVE DATA VENDORS?
- 1.10 USAGE OF ALTERNATIVE DATASETS ON THE BUY SIDE
- 1.11 CONCLUSION
- NOTES
- CHAPTER 2: The Value of Alternative Data
- CHAPTER 3: Alternative Data Risks and Challenges
- CHAPTER 4: Machine Learning Techniques
- CHAPTER 5: The Processes behind the Use of Alternative Data
- CHAPTER 6: Factor Investing
-
CHAPTER 1: Alternative Data: The Lay of the Land
-
PART 2: Practical Applications
- CHAPTER 7: Missing Data: Background
- CHAPTER 8: Missing Data: Case Studies
-
CHAPTER 9: Outliers (Anomalies)
- 9.1. INTRODUCTION
- 9.2. OUTLIERS DEFINITION, CLASSIFICATION, AND APPROACHES TO DETECTION
- 9.3. TEMPORAL STRUCTURE
- 9.4. GLOBAL VERSUS LOCAL OUTLIERS, POINT ANOMALIES, AND MICRO-CLUSTERS
- 9.5. OUTLIER DETECTION PROBLEM SETUP
- 9.6. COMPARATIVE EVALUATION OF OUTLIER DETECTION ALGORITHMS
- 9.7. APPROACHES TO OUTLIER EXPLANATION
- 9.8. CASE STUDY: OUTLIER DETECTION ON FED COMMUNICATIONS INDEX
- 9.9. SUMMARY
- 9.10. APPENDIX
- NOTES
- CHAPTER 10: Automotive Fundamental Data
- CHAPTER 11: Surveys and Crowdsourced Data
- CHAPTER 12: Purchasing Managers' Index
- CHAPTER 13: Satellite Imagery and Aerial Photography
- CHAPTER 14: Location Data
- CHAPTER 15: Text, Web, Social Media, and News
-
CHAPTER 16: Investor Attention
- 16.1. INTRODUCTION
- 16.2. READERSHIP OF PAYROLLS TO MEASURE INVESTOR ATTENTION
- 16.3. GOOGLE TRENDS DATA TO MEASURE MARKET THEMES
- 16.4. INVESTOPEDIA SEARCH DATA TO MEASURE INVESTOR ANXIETY
- 16.5. USING WIKIPEDIA TO UNDERSTAND PRICE ACTION IN CRYPTOCURRENCIES
- 16.6. ONLINE ATTENTION FOR COUNTRIES TO INFORM EMFX TRADING
- 16.7. SUMMARY
- CHAPTER 17: Consumer Transactions
- CHAPTER 18: Government, Industrial, and Corporate Data
- CHAPTER 19: Market Data
- CHAPTER 20: Alternative Data in Private Markets
- Conclusions
- References
- About the Authors
- Index
- End User License Agreement
Product information
- Title: The Book of Alternative Data
- Author(s):
- Release date: July 2020
- Publisher(s): Wiley
- ISBN: 9781119601791
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