14 February 2020

Our latest tool in the box


Our Quantitative Equity Research team has developed a Natural Language Processing (NLP) tool  on streaming finance news, which can extract insights and enhance predictions from unstructured natural language. While concentrating our research efforts on specific stock signals, we'll continue sharing any insight and on developing our NLP research over the coming months. NLP is a field of artificial intelligence that enables computers to analyse and summarize human generated textual data as well as transforming it to data representations friendly for quantitative models. 

 A News Flows Driven Market in EM

Recently the market has been strongly driven by news sentiment as exhibited in the chart below. Naturally, concerns mounted on the growing uncertainty surrounding the potential ramifications of the Coronavirus. Our sentiment signals on EM stocks was particularly correlated to the market. We believe that our research in sentiment variation ahead of market movement demonstrates the potential predictive power. 


Source: RAM Active Investments as of 31.01.2020

Note: our NLP model presented herein does not reflect any implemented strategy within our different investment strategies.