The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

RavenPack Offers Portfolio Ranking Tool Based on Sentiment

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.”

Related content

WEBINAR

Recorded Webinar: Best practice solutions for client lifecycle management

This webinar has passed, but you can view the recording by registering here. The challenges of client lifecycle management continue to increase, driven by regulation and requiring financial institutions to review processes around client onboarding, Know Your Customer (KYC) and client data maintenance. The webinar will outline the challenges faced by financial institutions, discuss best...

BLOG

Neuravest Harnesses AI, Alt Data for Portfolio Construction Platform to Improve Fund Performance

Neuravest Research, the data validation and predictive analytics company launched earlier this year as a successor to Lucena Research, has released a portfolio construction and management platform designed to help asset managers deliver superior fund performance through algorithmic portfolios using alternative data and AI technologies. According to Neuravest founder and CEO Erez Katz, the offering...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

Applications of Reference Data to the Middle Office

Increasing volumes and the complexity of reference data in the post-crisis environment have left the middle office struggling to meet the requirements of the current market order. Middle office functions must therefore be robust enough to be able to deal with the spectre of globalisation, an increase in the use of esoteric security types and...