StockSnips Inc Launches AI Sentiment-based Portfolio Models
Investor Sentiment Measure achieves Alpha
PITTSBURGH, Nov. 16, 2021 /PRNewswire/ -- StockSnips Inc has successfully tested and introduced Portfolio Models that leverage its proprietary News Sentiment Signals to achieve Alpha.
StockSnips, a market leader in Financial News Sentiment Signals, has released a new offering in the fast-growing AI based investing arena. According to a report from Grandview Research "The global AI in asset management market size was valued at USD 990.4 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 37.1% from 2020 to 2027."
Designing and building Stock portfolios to outperform benchmark indexes is the ever-present challenge facing portfolio managers. It is perhaps more challenging in the current era where market emotions and their underlying sentiments are generating increased turbulence in the analytical landscape. Markets are constantly impacted by frequent injections of data in the form of social media, and new sources of investor sentiment and chatter.
Today, the ability to digest this broadly available unstructured data and quantifying them to predictive signals is the new paradigm. It is becoming imperative for asset managers to take on new approaches, not only for portfolio results, but to provide a bespoke service to their clients that sets them apart from Asset Managers trading with solely fundamentals. Access to alternative data and AI Platforms such as StockSnips is the breakthrough of our era, allowing firms to devote the time needed to expand their core competencies and be competitive.
StockSnips has proven success in separating signals from the noise, which is the major challenge for Asset Managers. Most sentiment analysis using the survey methodology exists at a macro-level. For portfolio managers, in order for sentiment to be a reliable factor in portfolio construction, it needs to be significantly more precise and predictive. What is needed is Micro-sentiment, focused at the individual firm level.
Ravi Koka, CEO of StockSnips commented, "We are excited to bring AI Models for Investing to investment advisors and asset managers, leveraging our extensive research in transforming unstructured textual information to a valid signal, and a robust proxy for measuring investor sentiment for a company. The current results bode well for the future use of sentiment as a factor in a multi-factor portfolio design. In short, we believe it is time to get sentimental."
The New Face for Sentiment in Portfolio Management
Querying enormous quantities of unstructured data to find the predictive diamond typically doesn't fall under an investors' core competencies. This is an ideal use case for StockSnips News-based sentiment which intrinsically covers an array of factors like interest rates, supply chain issues, data breaches and tariffs and is an early indicator of stock price impact. Our analysis has shown that there is a significant correlation between change in sentiment and price, and StockSnips news-based sentiment establishes a cherished alternative data signal.
Major Firms Validate Alpha Value of Sentiment
Equity research firms, academic researchers and quantitative funds have confirmed that AI and big data-based sentiment contributes to double digit Alpha in portfolio returns. We have licensed our Models to Registered Investment advisors and asset managers and StockSnips AI Sentiment-based models outperform benchmarks in back tests and live trading.
Cirrus Research in a study reported that "Big Data sentiment offers portfolio gains. Our analysis examines the sample period from April 2016 through 2019. Applying the StockSnips signal to our Mid Cap universe led to a gain of 93.3% vs 69.2% for the Mid Cap benchmark over the sample period. Similarly, applying the signal to our Small Cap universe gained 96.3% vs 56% for the Small Cap benchmark over the sample period." 1
StockSnips has partnered with UX Wealth Partners who build powerful, practical solutions for RIAs. With backgrounds in technology, trading, and artificial intelligence, the UX Wealth team has created tools to help RIAs build a better future for themselves and their clients. Kyle Wiggs, Co-Founder and Managing Partner of UX Wealth Partners observed "Fee compression is, in part, the result of advisors using the same investment strategies and technologies that clients can directly access. Unfortunately, there is a lot of noise and confusion about building a genuinely differentiated tech stack as an advisor. UX is thrilled to add StockSnips to its investment lineup, furthering our commitment to bringing cutting edge technology and investments to RIAs that are committed to challenging the status quo."
About StockSnips Inc:
StockSnips (www.stocksnips.ai) is a US based company founded by world-class computer/data scientists and financial experts. Our vision is providing easy access to stock market news sentiment analysis to investors. Quantifying investor sentiment trends at the company level has increasingly become important in understanding its impact on price action, and our value lies in providing high quality AI-based portfolio models that leverage sentiment signals to achieve alpha. Our Portfolio Models have been validated for several investment strategies and are being actively traded by investment professionals.
1 The return results were based on backtests, not realized or audited returns.
Contact:
StockSnips Inc:
Media: Rebecca Wilde
Email: [email protected]
Linkedin: https://www.linkedin.com/company/stocksnips/
Twitter: https://twitter.com/StockSnips
Facebook: https://www.facebook.com/stocksnips
SOURCE StockSnips Inc
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article