Two Ways to Leverage Applied Cadence Global Sentiment:
High probability strategies
Having a sentiment data is only valuable when you can use that data reliably and with repeatable results. The Global Sentiment Strategies provide an out-of-the-box solution for investors and institutions to easily add a sentiment-based strategy to their portfolios. Global Sentiment includes both long/short and volatility based strategies.
Modeled Sentiment Data
We provide more than a surface-level abstract sentiment score. We track sentiment for specific equities using hundreds of sources and frequent snapshots. Our data is paired with price and volatility outcomes to produce predictive actionable data. Applied Cadence has a library of sentiment data which can be used to give your quantitative models or strategies an advantage.
Long/short or volatilityGlobal Sentiment has models built for both directional based outcomes as well as volatility. Data and strategies are available for both.
Flexible FrameworkSentiment data and strategies are designed to be easily integrated into existing methodologies and risk management frameworks. No exotic derivatives, stringent timing parameters, or esoteric investment methods needed.
Depth of DataWe are focused on delivering data and strategies that can perform. Our data and strategies are used by funds and family offices for in-production funds.
Meaningful Results
Global Sentiment begins with quality data sources sources and proven methodology. We maintain a curated list of sentiment sources unique to each equity we monitor. These data are then processed using multiple technologies to dimensionalize the data into a machine-readable format suitable for modeling. We then use near term price outcomes as the basis for our modeling to provide an output which can be used to interpret sentiment in the context of predictive price action.
Strategy Performance
Global Sentiment provides a way for analysts to monitor the pulse of the global markets and leverage sentiment data through machine learning models. These models provide directional movement predictions and volatility predictions for a basket of large cap equities tracked by Applied Cadence. By analyzing the Applied Cadence Global Sentiment data feed, you can gain access to these models and predictions to incorporate these strategies into your own investing quantitative models and framework.
Market sentiment is incredibly complex - technology to not only to analyze sentiment sources but also develop models to harness these data have been developed by Applied Cadence over years of research and development. Our approach goes beyond a simplistic view of sentiment analysis. We look at individual sentiment characteristics for each entity we monitor using multiple sources. The library of historical sentiment captured encompasses years of active research.
Global Sentiment In Action
Global Sentiment continually analyzes sentiment data for trade opportunities. In this example, UPS announced a $20 billion overhaul focused on automation and business to business shipments instead of consumer “last mile” shipments. Investors did not react well to this news and the Global Sentiment model predicted a near term pullback.
The Global Sentiment model analyzed news, social media reactions, as well as technical price data to conclude in the near term UPS was most likely to decline. As shown this prediction was correct. UPS continued to decline until reaching a near term low shortly after earnings announcement in late October 2018.
