NewsHedge, a Chicago-based financial data technology company, has announced the release of the NewsHedge ALPHA API Twitter Edition, a new systematic trading solution for generating alpha.
“Systematic trading used to be all about speed,” said NewsHedge founder and CEO Kevin Evenhouse. “But now it’s all about data—and that means it’s all about Twitter, which is essentially the new newswire. Our latest solution allows users to quickly identify and exploit the reliable, differentiated information being disseminated through Twitter. It solves one of the biggest challenges quantitative financial professionals encounter today: how to harness the power of Twitter.”
NewsHedge, in partnership with METRICLE—a Twitter analytics company—developed a two-part information-discovery process for finding and processing key news events. Unlike other information-discovery platforms, NewsHedge doesn’t rely primarily on natural language processing (NLP) technologies for finding market-moving news on Twitter. Instead, NewsHedge first determines what is market moving by examining an asset’s order book, time and sales, and trading volume for unusual trading behavior commonly brought on by news. When NewsHedge detects an event, METRICLE’s multi-tiered curation techniques are used to process conversational sentiments, tag events, measure trends, and gauge social velocity data.
“Our solution results in a highly predictive, easily consumable data set that allows firms to react to market-moving events in a quick and accurate manner. They can now locate the alpha generating data they need and build sustainable, robust trading models,” said Vishal Goklani, CEO and co-founder of METRICLE. “The technological requirements to digest and decipher Twitter data is extremely high. Our solution delivers the actionable data quantitative firms seek but can’t find because they don’t have the resources, time, and know-how for doing so.”
On an average trading day, NewsHedge monitors over 6,200 individual assets and generates 50 alerts. “Thirty-five of those alerts will be market moving,” said Evenhouse. “As these events break, influential money managers, traders, journalists, public companies, and reputable media firms are sharing timely information on social media—giving us the opportunity to structure and quantify those events for our clients. We’re the only vendor in the industry that combines real-time streaming exchange data with correlated data found on Twitter—allowing our clients to easily harness the enormous amount of data Twitter provides.
NewsHedge was founded in 2012 out of a need for actionable, event-detection technologies. Since then, NewsHedge has grown into a diverse team of experienced finance professionals who have helped some of the most sophisticated electronic trading firms, quant groups, hedge funds, and traders profit from market-moving events. NewsHedge has also invented new methods for distributing financial information—see U.S. Patent No. 9,135,662. To learn more, visit http://www.newshedge.com.
METRICLE is a financial data analytics company that leverages machine learning, social network analysis, natural language processing, and time series analysis to detect market-moving events in real time. The company’s automated technology curates Twitter, SEC filing, major wires, price feeds, blogs, chat rooms, and news outlets, and transforms hundreds of gigabytes of data into actionable alerts. To learn more, visit http://www.metricle.com. To request a demo, email info(at)metricle(dot)com.
Contact: Kevin Evenhouse