The Book of Alternative Data

CHAPTER 14Location Data

14.1. INTRODUCTION

Satellites have not only had a profound impact on the ability to produce imagery, as discussed in Chapter 13. They have also made it easier to find our location using GPS (global positioning system) and similar systems like Galileo. GPS capability is now built into many devices installed in cars, ships, and airplanes, as well as in mobile phones.

The location of mobile phones can also be tracked by triangulation of a mobile phone's signal from different mobile phone transmitters. This can be particularly important within buildings where GPS might be inaccessible. Location data from mobile phones can be collected in a number of ways, including through the use of different mobile phone apps.

There are many examples of how location data can be useful for investors. Specifically, in this chapter, we will look at research on the movement of ships to monitor the seaborne exports of crude oil. Later, we will talk about how mobile phone location data can be used to understand retail activity. We will also discuss a study that examines taxi ride data in New York City to the New York Fed around the time of the FOMC meetings to shed light on the flow of market information around these periods. There is also a section on using corporate jet activity as a leading indicator for M&A activity.

14.2. SHIPPING DATA TO TRACK CRUDE OIL SUPPLIES

It is possible to obtain global trade statistics using sources like UN Comtrade or from national government ...