Alternative Data

Invest in Data

AltData

Intro – Alternative Data

Alternative data can be described as any data that is not typically used in traditional financial analysis and investing. This data is collected from sources as diverse as social media, satellite imagery, shipping networks, web-scraped data and crowd-sourced data. It is often used to gain insights into companies, markets, and industries that may not be available from traditional data sources. A few examples of alternative data categories include:

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Supplychain data

Supply chain relationships are increasingly used in investment management as a tool to identify and assess risks in the supply chain. By understanding the dynamics of the supply chain, investors can detect areas of potential disruption and seize opportunities to mitigate the risks. This can include evaluating the stability of the suppliers, understanding the supply chain processes, and ensuring that the supplier is meeting their contractual obligations. Additionally, by studying the supply chain relationships, investors can evaluate the financial health of a company (eg through a diversified customer portfolio) and identify companies that can exercise market power over their competitors.

AltData

Consumer transaction data

Consumer transaction data such as data from aggregated credit card panels can be used in investment management in a few different ways. For example, it can provide insight into consumer spending patterns, which can help inform investment decisions. Also, it can be used to detect potential fraud, helping to ensure that investments are secure. Additionally, transaction data can be used to identify potential market opportunities, such as identifying new emerging trends that may be a good investment. Finally, transaction data can be combined with other data sources to create predictive models that can help investors identify potential investments that are more likely to be successful.

AltData

Job listing data

Job listing data can be used in investment management to gain insights into the labor market, including job openings and job transitions, to help inform decisions about where to invest capital. For example, job listing data can be used to identify industries and regions that have high levels of job openings, indicating potential for growth and higher returns. It can also be used to identify sectors with declining job openings, which may indicate an industry in decline and lower returns. Job listing data can also provide insights into the skills and qualifications that are in high demand in the labor market, to inform decisions about what kinds of investments to make.

twitter

Social sentiment data

Social sentiment data can be derived from social media networks, news outlets, discussion forums, blogs, and is used to identify and analyze public opinion about a company, industry, asset class, or macroeconomic environment. It is a rich and growing resource that can be used to understand how individual investors think, identify emerging market trends, gauge investor sentiment and gauge the impact of news and events on their positions.

AltData

Product

QI Investment delivers data insights that inform equity investment strategies for institutional clients. QI advises a market neutral equity fund which leverages information from alternative data sources. The Fund selects equities from listed European companies. This mechanism draws heavily on academic methods in combination with alternative data and AI-enhanced technology. The portfolio is primarily comprised of equities in listed companies. Derivatives are used for hedging purposes.

AltData

Services

Please contact us for insights related to alternative data and insights into situations of companies.
E: enquiry@qi-investment.com

 

AltData

Resources

For a discussion about access to alternative data providers and related resources please feel free to contact us.

Frequently Ask Questions

Have any questions?

Alternative data are non-traditional, non-financial data that can be used by investors to obtain a competitive advantage in the securities trading market. This type of data includes consumer online activity, social media posts, satellite imagery, and many other sources.

Answer: Alternative data provides investors with insights that can help identify potential trading opportunities not available from traditional financial data sources. This can help with portfolio construction, risk management, and improving predictive analytics.

Answer: The main categories of alternative data include web data, satellite imagery, consumer behavior data, location data, social media data, and market data.

Answer: Alternative data can be used in conjunction with traditional data sources to create predictive models for securities trading. This type of data can help identify potential opportunities and patterns not detectable from traditional sources.

Answer: When using alternative data, businesses must ensure that they are following ethical guidelines to protect consumer privacy. This includes ensuring that businesses only use data they have obtained legally, that they process the data in a secure and private manner, and that they provide consumers the ability to opt-out of sharing their data.

Answer: The main challenges associated with alternative data include challenges in obtaining quality data, the cost associated with obtaining and processing the data, and the for data provider continuous process of staying compliant with data privacy regulations.

Answer: The best way to process alternative data is to use a combination of AI, machine learning, and data mining techniques. This will allow companies to identify potential opportunities quickly and accurately.

Answer: The best way to process alternative data is to use a combination of AI, machine learning, and data mining techniques. This will allow companies to identify potential opportunities quickly and accurately.

Answer: Yes, there are a number of regulations and guidelines that businesses must follow when using alternative data. This includes compliance with the General Data Protection Regulation (GDPR).

Myth Debunked

Have any doubts?
Fact: Alternative data can be used by individual investors as well. It can be used to identify small-cap stocks, identify potential investments, and to stay up to date with the market.
Fact: Yes, there are a number of regulations and guidelines that businesses must follow when using alternative data. This includes compliance with the General Data Protection Regulation (GDPR).
Fact: Alternative data can take some time to understand, but there are many resources available to help you understand and utilize the data.
Fact: Alternative data can be used to identify potential trends and patterns, thereby giving it predictive power.
Fact: Many alternative data sources are verified, ensuring their accuracy and reliability.
Fact: Mining for cryptocurrencies requires a certain amount of energy to process transactions and secure the network. However, the energy requirements of crypto-currency mining have been greatly exaggerated and many crypto-currencies are specifically designed to minimize energy consumption.
Fact:Crypto-currencies are not a Ponzi scheme, as their value is determined in the open market rather than being artificially inflate by any person or entity. Furthermore, many mainstream crypto-currencies are actively traded across multiple exchanges and have a wide range of applications from payments to smart contracts.
Fact: Each crypto-currency is unique in its purpose and design. For example, Bitcoin is the world’s first decentralized digital currency while Ethereum is a blockchain platform for creating and managing smart contracts. As such, investors should research the different crypto-currencies to determine how they might fit into their portfolio.
Fact: Each crypto-currency is unique in its purpose and design. For example, Bitcoin is the world’s first decentralized digital currency while Ethereum is a blockchain platform for creating and managing smart contracts. As such, investors should research the different crypto-currencies to determine how they might fit into their portfolio.

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    AltData

    Intro - Alternative Data

    Alternative data can be described as any data that is not typically used in traditional financial analysis and investing. This data is collected from sources as diverse as social media, satellite imagery, shipping networks, web-scraped data and crowd-sourced data. It is often used to gain insights into companies, markets, and industries that may not be available from traditional data sources. A few examples of alternative data categories are described below.

    Supply chain data

    Supply chain relationships are increasingly used in investment management as a tool to identify and assess risks in the supply chain. By understanding the dynamics of the supply chain, investors can detect areas of potential disruption and seize opportunities to mitigate the risks. This can include evaluating the stability of the suppliers, understanding the supply chain processes, and assessing whether the supplier is meeting its contractual obligations. Additionally, by studying the supply chain relationships, investors can evaluate the financial health of a company (eg through a diversified customer portfolio) and identify companies that can exercise market power over their competitors.

    AltData
    AltData

    Consumer transaction data

    Consumer transaction data such as data from aggregated credit card panels can be used in investment management in a few different ways. For example, it can provide insight into consumer spending patterns, which can help inform investment decisions. Also, it can be used to detect potential fraud, ensuring that investments are secure. Additionally, transaction data can be used to identify potential market opportunities, such as identifying new emerging trends that may be a good investment. Finally, transaction data can be combined with other data sources to create predictive models that can help investors identify potential investments that are more likely to be successful.

    Job listing data

    Job listing data can be used in investment management to gain insights into the labor market, including job openings and job transitions, providing guidance where to invest capital. For example, job listing data can be used to identify industries and regions that have high levels of job openings, indicating potential for growth and higher returns. It can also be used to identify sectors with receding job openings, which may indicate an industry in decline and lower returns. Job listing data can also provide insights into the skills and qualifications that are in high demand in the labor market.

    AltData
    twitter

    Social sentiment data

    Social sentiment data can be derived from social media networks, news outlets, discussion forums, or blogs and is used to identify and analyze public opinion about a company, industry, asset class, or the macroeconomic environment. It is a rich and growing resource that can be used to understand how individual investors think, identify emerging market trends and assess the impact of news and events.

    AltData

    Product

    QI Investment delivers data insights that inform equity investment strategies for institutional clients. QI advises a market neutral equity fund which leverages information from alternative data sources. The Fund selects equities from listed European companies. This mechanism draws heavily on academic methods in combination with alternative data and AI-enhanced technology. The portfolio is primarily comprised of equities in listed companies. Derivatives are used for hedging purposes.

    I'm a professional investor from Germany

    Yes No

    This information is only available for professional investors from Germany

    AltData

    Services

    Please contact us for insights related to alternative data and insights into situations of companies.

     

    E: enquiry@qi-investment.com

    AltData

    Resources

    For a discussion about access to alternative data providers and related resources please feel free to contact us.

    Frequently Asked Questions

    Have any questions?

    Alternative data are non-traditional, non-financial data that can be used by investors to obtain a competitive advantage in the securities trading market. This type of data includes consumer online activity, social media posts, satellite imagery, and many other sources.

    Alternative data provides investors with insights that can help identify potential trading opportunities not available from traditional financial data sources. This can help with portfolio construction, risk management, and improving predictive analytics.

    The main categories of alternative data include web data, satellite imagery, consumer behavior data, location data, social media data, and market data.

    Alternative data can be used in conjunction with traditional data sources to create predictive models for securities trading. This type of data can help identify potential opportunities and patterns not detectable from traditional sources.

    When using alternative data, businesses must ensure that they are following ethical guidelines to protect consumer privacy. This includes ensuring that businesses only use data they have obtained legally, that they process the data in a secure and private manner, and that they provide consumers the ability to opt-out of sharing their data.

    The main challenges associated with alternative data include challenges in obtaining quality data, the cost associated with obtaining and processing the data, and the for data provider continuous process of staying compliant with data privacy regulations.

    The best way to process alternative data is to use a combination of AI, machine learning, and data mining techniques. This will allow companies to identify potential opportunities quickly and accurately.

    The best way to process alternative data is to use a combination of AI, machine learning, and data mining techniques. This will allow companies to identify potential opportunities quickly and accurately.

    Yes, there are a number of regulations and guidelines that businesses must follow when using alternative data. This includes compliance with the General Data Protection Regulation (GDPR).

    Myth Debunked

    Have any doubts?
    Fact: Alternative data can be used by individual investors as well. It can be used to identify small-cap stocks, identify potential investments, and to stay up to date with the market.

    Fact: Depending on the specific data category, the costs of Alternative Data sources can vary a lot. For instance, social sentiment data tend to be cheaper compared with consumer transaction data, which can come with a bigger price tag. What is more important, though, is the potential of a data set to create value relative to its acquisition cost and  not the price of the data itself.

    Fact: Alternative data can take some time to understand, but there are many resources available to help you understand and utilize the data.

    Fact: Alternative data sets are not part of standard packages of traditional data providers and need on average more intense preprocessing by its user. Therefore, they contain information which is tapped by a smaller investor audience and deliver signals that are not exploited by the mainstream market. The actual predictive power of a data set – traditional or alternative – needs to be tested on a case-by-case basis.

    Fact: Data providers go to great lengths to build consistent and high-quality data sets. Competition between alternative data providers has also contributed to a continuous improvement of their products. In addition, many alternative data sources can be verified manually for a random sample, which further ensures their accuracy and reliability.

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      Purpose-Bound Data Usage
      Under the principle of purpose-bound data usage, we collect, process and store personal data only for the purposes that the user has communicated to us. Without explicit consent, no further transmission of the user’s personal data to third parties will take place – unless this is necessary for the performance of the service or for the performance of the contract. Transmission to authorized state institutions and authorities is limited to those required under the statutory duty to provide information (or a court decision to provide information). Employees and service companies commissioned by us are obliged to maintain confidentiality and comply with data protection regulations.

      Newsletter, Information Material Request & Contact Forms
      The website visitor can make use of different forms for specific services (newsletter, information material request, and contact forms). In accordance with GDPR, the data collected in these form may be processed for the purpose of fulfilling you this service (like sending newsletter, information material, or contacting the interested party). To facilitate this, the data will be shared with third-party provider Mailchimp. The submitted data will only be used for this specific purpose and will not be shared with another third party without your explicit consent. 

      Cookies
      “Cookies” are small files that are stored on users’ computers. Different information can be stored on a cookie. Firstly, it is used to store information about a user (or the device on which the cookie is stored) during or after his visit to an online service. Temporary cookies (also called “session cookies” or “transient cookies”) are cookies that are deleted when a user leaves an online service and closes his browser. These cookies can, for example, save the contents of a shopping cart. Cookies that are referred to as “permanent” or “persistent” remain even after the browser is closed. For example, the login status can be saved – even if a user visits the website again after several days. “Third-party cookies” are offered by other providers than the responsible party (which operates the online service). Cookies of the responsible party are referred to as “first-party cookies”.

      Both temporary and persistent cookies can be used and are explained in this privacy policy.

      If a user does not want cookies to be stored on his computer, he should disable the corresponding options in the system settings of his browser. The stored cookies can be deleted in the system settings of the browser. Exclusion of cookies may lead to functional restrictions of this online service.
      Collection of access data and log files
      The controller of the website or the hosting provider collects data on each access to the server on which this service is located (so-called server log files) on the basis of a legitimate interest within the meaning of Art. 6 para. 1 lit. f. GDPR. Access data includes the name of the retrieved website, file, date and time of retrieval, amount of data transferred, message about successful retrieval, type of browser including version, user’s operating system, referrer URL (the previously visited page), IP address and the requesting provider.

      For security reasons (e.g. for the investigation of abuse or fraud), log file information is stored for a maximum of seven days. After that, they are deleted. Data whose further retention is necessary for evidence purposes is exempted from deletion until the final clarification of the respective incident.

      Type of log files and data collection
      Access log files and error log files are stored on the server. These log files contain the user’s IP address and thus personal data. The following data is collected: visited website, time at the time of access, amount of data sent in bytes, source / reference from which the user reached the page, used browser, used operating system and used IP address. A contract processing contract (AVV) is concluded with the hosting provider, which meets the requirements of § 11 BDSG.

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      Hosting services taken up by the controller of the website serve to provide the following services: infrastructure and platform services, computing capacity, storage space and database services, security services and technical maintenance services used for the operation of this online offer.

      In this context, the controller or the hosting provider processes inventory data, contact data, content data, contract data, usage data, meta and communication data of users of this online offer on the basis of a legitimate interest in an efficient and secure provision of the online offer in accordance with Art. 6 para. 1 lit. f GDPR in conjunction with Art. 28 GDPR (conclusion of a contract processing contract). 

      Right to information and objection
      The user has the right at any time to obtain free information about stored personal data, their origin and recipients and the purpose of data processing. In addition, there is a right to correction, blocking or deletion of these data. Deletion can only take place if there are no legal or contractual obligations to collect data. If data has been collected on the basis of a legitimate interest, the user has the possibility of objecting to the processing.

      Use of Google Analytics
      Scope of processing of personal data: We use Google Analytics, a web analysis service of Google LLC., 1600 Amphiteatre Parkway, Mountain View, CA 94043, United States (“Google”) on our website. Google Analytics uses so-called “cookies”, text files that are stored on your computer and enable an analysis of your use of the website. The information generated by the cookie about your use of this website is transferred to a Google server in the USA and stored there. If IP anonymization is activated on this website, your IP address will be shortened by Google within member states of the European Union or in other contracting states of the Agreement on the European Economic Area. Only in exceptional cases will the full IP address be transferred to a Google server in the USA and shortened there. IP anonymization is active on this website. On behalf of the operator of this website, Google will use this information to evaluate your use of the website, to compile reports on website activity and to provide other services related to website usage and internet usage to the website operator. The IP address transmitted by your browser as part of Google Analytics will not be merged with other data from Google. You can prevent the storage of cookies by a corresponding setting of your browser software; however, please note that if you do this, you may not be able to use all the features of this website to the fullest extent.

      Legal basis for the processing of personal data: The legal basis for the processing is Art. 6 (1) lit. f GDPR.

      Purpose of data processing: The purpose of processing the personal data is to address a target group that has already shown an initial interest by visiting the site.

      Duration of storage: Advertising data in server logs are anonymized by Google deleting parts of the IP address and cookie information after 9 or 18 months.

      Opposition and elimination possibility: You can also prevent Google from collecting the data generated by the cookie and relating to your use of the website (including your IP address) and from processing this data by downloading and installing the browser plugin available at the following link:

      http://tools.google.com/dlpage/gaoptout?hl=de. For more information, please visit

      https://www.google.com/intl/de/policies/privacy/partners (“How Google partners use data”),

      http://www.google.com/policies/technologies/ads (“Data usage for advertising purposes”),

      http://www.google.de/settings/ads (“Manage the information Google uses to show you ads”), and

      http://www.google.com/ads/preferences (“Determine which advertising Google shows you”).

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      The information contained is not intended for publication, use or distribution to or by any person from any other country than Germany. In particular, this information is not intended for distribution in the United States of America (USA), for citizens of the USA or for persons resident or domiciled in the USA or persons acting on their behalf. The content provided is for information purposes only. In particular, it does not constitute an offer to sell, buy or subscribe to securities or other instruments. If persons resident or domiciled abroad access the information contained on the website, the operator of the website does not provide any assurance or guarantee that the information contained complies with the provisions applicable in the country concerned. All information on this website is directed exclusively at persons having their registered office or habitual residence in Germany. Furthermore, I confirm that I am a professional investor within the meaning of Section 67 II of the German Securities Trading Act (WpHG). I am aware that I enjoy a reduced level of protection compared to a private client with regard to financial services. This website uses cookies to improve the user experience. By using this website, you consent to the use of cookies by our website. I confirm that I meet the above requirements with regard to the investor group and have read, understood and accepted the information relating to the use and distribution restrictions. The investment advice pursuant to Section 2 (2) No. 4 of the German Securities Trading Act (WpIG) and the investment brokerage pursuant to Section 2 (2) No. 3 of the German Securities Trading Act (WpIG) are provided on behalf of, in the name of, for the account of and under the liability of the liable party BN & Partners Capital AG, Steinstraße 33, 50374 Erftstadt, pursuant to Section 3 (2) WpIG. BN & Partners Capital AG has a corresponding permit for the aforementioned financial services from the German Federal Financial Supervisory Authority (BaFin) pursuant to Section 15 WpIG.

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