Turning news flow into returns
Markets are driven by data, but also by emotion, or sentiment. There is an opportunity to identify and act on shifts in sentiment before they are fully reflected in prices. Over the last decade, we have developed systems to understand current sentiment and invest in the opportunities that arise.
Introducing the Quoniam Global Data Sentiment strategy
Quoniam Global Data Sentiment is a liquid long/short strategy that identifies and acts on market-moving shifts in sentiment before they are priced in by analysing unstructured news flow to identify key investment signals.
Alternative alpha
The use of unstructured data to generate signals for a sentiment strategy offers investors the opportunity for alternative alpha: Our strategy aims to identify market sentiment as early and reliably as possible and to use our head start for positioning.
True diversification
By using our proactive sentiment strategy, you can achieve a higher diversification of your portfolio – thanks to low or negative correlations to traditional asset classes and hedge funds.
Capturing insights before the market:
What is sentiment and how to leverage it?
- Sentiment captures emotions:
Sentiment not only incorporates all available fundamental and technical information, but also reflects emotions such as optimism or pessimism - Faster to market:
Alternative data reflects market sentiment as it happens, allowing earlier positioning in the markets. - Signals from noise:
Best-in-class global databases and our unique machine learning approach generate a broad range of relevant trading signals in near real time. - Only liquid markets and instruments:
Trading only in liquid markets using futures and forwards enables us to achieve a high level of speed and minimise trading costs.
Maximising your information advantage
| Our process | Our edge | |
|---|---|---|
| Capture | Expert due diligence identifies the most reliable news sources. > 1 million stories are reduced down to around 50,000 daily | We identify and partner with the largest, most reliable and most insightful sources of news data, gaining access behind pay walls. |
| Refinement | Machine learning tools filter the stories down to 1,000 of topics. Around 100 topics converted into signals. | Our data scientists identify the relevant sentiment indicators that can move markets. |
| Signals | Models aggregate signals into country, asset class and currency categories. | Our proprietary technology platform calculates data in near real time. |
| Implementation | Signals are assessed daily and implemented twice weekly. Position outcomes are realised rapidly and exited efficiently. | The strategy has a high hit rate for its signals, coupled with cost-efficient implementation. |
Our edges: Adding value every step of the way
- Input:
After thorough analysis, we have chosen reliable sentiment data providers and continuously monitor additional sources for valuable insights. Our focus on high-quality data keeps us ahead in the market sentiment landscape. - Identification:
Our researchers and data scientists identify key news topics that influence market movements. Using our machine learning system, we refine over a million daily news items into actionable signals. We capture macro events and expert insights on significant business developments, enabling us to anticipate trends faster than traditional data sources. - Implementation:
We implement our positions before sentiment impacts market prices, finding the optimal execution point for balancing returns and costs. While others analyse, we have already acted. Whether it is a positive or negative position, we have a proven hit rate in getting it right.
Key features
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Diversification:A low correlation with traditional asset classes and hedge fund strategies. -
Performance:A three-year real-money track record for the underlying strategy, supported by simulated data since 2015 showing attractive levels of risk-adjusted absolute performance.
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Speed and cost-efficiency:Investing in the most liquid global equity, bond and currency markets to allow fast implementation of our signals at a low cost.
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insights
Get in touch with Quoniam, and let’s discuss your investment goals and how to achieve them. Contact us for an analysis of the best strategy for you.