A-Team Insight Blogs

RavenPack Offers Portfolio Ranking Tool Based on Sentiment

Share article

RavenPack, a provider of big data analytics to financial institutions, has released a portfolio ranking tool based on sentiment factors. Users can upload a stock portfolio and tailor their analysis to address risks detected across 19,000 sources including news, social media, regulatory filings, and transcripts. The portfolio ranking tool uses stock rankings to monitor users’ headline risk, identify sentiment indicators, or flag companies that are no longer aligned with users’ strategies. Ranking stocks using RavenPack’s sentiment factors can provide a way to incorporate the value of big data in a quantifiable manner.

RavenPack CEO Armando Gonzalez says: “RavenPack’s sentiment analysis is performed using a proprietary Natural Language Processing (NLP) engine designed specifically to process finance-related content. Most NLP services are trained with general language corpuses using machine learning techniques, which yield low precision and recall levels, and are insignificant to yielding alpha or excess returns. These naïve approaches lack the understanding of business terms or financial lingo or the implication of business, macroeconomic and geopolitical announcements on stock prices, volatility, and market liquidity.”

Users of the ranking tool are able to rank high those companies that have positive earnings and product sentiment, and view whether a company has experienced a negative environmental, social, or government (ESG) event. The tool also provides a means of ranking stocks by sustainable corporate behaviour and measuring how well firms manage idiosyncratic and systemic risks.

Gonzalez concludes: “Investors seeking value need to be informed of how ESG events impact both the short-term and long-term value of their investments. By systematically analysing thousands of news and social media sources, RavenPack provides awareness of ESG factors that can improve or erode the value of securities.”

Leave a comment

Your email address will not be published. Required fields are marked *

*

Related content

WEBINAR

Recorded Webinar: How to exploit the opportunities of alternative data

Alternative data is emerging as a key component of buy-side firms’ efforts to seek out new investment opportunities, for many filling the gap left by the unbundling of sell-side research from execution. By tapping into unique, non-traditional data sets, hedge funds and quantitative fund managers hope to exploit unfound opportunities before they hit the mainstream....

BLOG

Data and Research: Two Sides of the Same Coin

By Evan Schnidman, President of Prattle, a Liquidnet company. For decades, the asset management community has treated research and data as two distinct goods – separate commodities to be controlled by separate institutions. Data was the domain of Bloomberg, Thomson Reuters (now Refinitiv), FactSet, S&P, and others, while research was the domain of large banks...

GUIDE

Corporate Actions Europe 2010

The European corporate actions market could be the stage of some pretty heavy duty discussions regarding standards going forward, particularly with regards to the adoption of both XBRL tagging and ISO 20022 messaging. The region’s issuer community, for one, is not going to be easy to convince of the benefits of XBRL tags, given the...