Alexandria Builds Relevancy Indicators into Sentiment Scores
Currently, Alexandria's proprietary Contextual Text Analytics engine (ACTA) generates either positive, negative or neutral classifications for articles published by Dow Jones Newswires' feeds, after striking a deal to provide sentiment scores on the news provider's content in February 2012.
Next month, Alexandria will add a new classifier to its assessments that assigns a relevancy score to each company mentioned in an article, says Alexandria chief executive and co-founder Eugene Shirley.
"If there are three companies mentioned in article and the sentiment is primary about one company, but... it also has an effect on the other companies that are mentioned, the relevancy score would say "This is a positive article, and it is primarily positive about this company but it does have some positive effect on these others,'" Shirley says.
The vendor generates the scores in real time and delivers them to trading systems in as little as 20 to 30 milliseconds, or as an end-of day-file to less latency-sensitive customers such as long-term investors. Alexandria is exploring opportunities to integrate the sentiment within various displays, though the vendor's primary focus is serving quantitative investors, Shirley adds.
The algorithm used to calculate the sentiment was developed by Alexandria's chief scientist Ruey-Lung Hsiao, whose previous work in academia involved extracting critical intelligence from genomic data, which the firm is now applying to news and unstructured data to serve financial services firms.
The methodology─which delivers around 90 percent accuracy, according to internal testing─draws on an observation-based approach that "teaches" the engine to create its own rules, rather than traditional word-based or rule-based approaches.
"Word-based sentiment gives a sentiment assignment to a word like ‘upwards' or ‘downwards,' then counts up the number of positive and negative words to assign sentiment─but it's based on the fallacy of having a perfect dictionary that contains all nuances of language," Shirley says. "Other systems have been built based on writing rules, but that's based on the fallacy of a perfect rule set. Rather than create rules, we have experts in the field annotate articles in finance and feed these training examples into the system, and the system creates its own rules, like training a child."
Alexandria's core focus is on English-language news from Dow Jones covering all asset classes, but─given the approach of its methodology─Shirley says the vendor is also able to provide sentiment from feeds in other languages, including Japanese-language real-time newswires such as the Nikkei/Dow Jones Japan Report produced by Nikkei in partnership with Dow Jones.
In addition, the vendor is also looking at the potential to apply its sentiment methodology to social media and other forms of unstructured data in future.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Chief data officers must ‘get it done’—but differ on what that means
Voice of the CDO: After years of focus on data quality, governance, and compliance, CDOs are now tasked with supporting the business in generating alpha and driving value. How can firms put a value on the CDO role?
In a world of data-cost overruns, inventory systems are a rising necessity
The IMD Wrap: Max says that to avoid cost controls, demonstrate the value of market data spend.
S&P debuts GenAI ‘Document Intelligence’ for Capital IQ
The new tool provides summaries of lengthy text-based documents such as filings and earnings transcripts and allows users to query the documents with a ChatGPT-style interface.
As NYSE moves toward overnight trading, can one ATS keep its lead?
An innovative approach to market data has helped Blue Ocean ATS become a back-end success story. But now it must contend with industry giants angling to take a piece of its pie.
AI set to overhaul market data landscape by 2029, new study finds
A new report by Burton-Taylor says the intersection of advanced AI and market data has big implications for analytics, delivery, licensing, and more.
New Bloomberg study finds demand for election-related alt data
In a survey conducted with Coalition Greenwich, the data giant revealed a strong desire among asset managers, economists and analysts for more alternative data from the burgeoning prediction markets.
Waters Rankings 2024 winner’s interview: S&P Global Market Intelligence
S&P Global Market Intelligence won two categories in this year’s Waters Rankings: Best reporting system provider and Best enterprise data management system provider.
How ‘Bond gadgets’ make tackling data easier for regulators and traders
The IMD Wrap: Everyone loves the hype around AI, especially financial firms. And now, even regulators are getting in on the act. But first... “The name’s Bond; J-AI-mes Bond”