Tag: Mediolanum Asset Management

Mediolanum Asset Management

Using Data to Generate Alpha Signals

Charles Ellis, a trader and quantitative strategist at Mediolanum Asset Management, explains how data can be used to help generate alpha signals.

The first thing that Ellis points out is how trading firms can most effectively use data is dependent on their investment process and the type of research questions they are trying to use the data to answer.

For starters, he says, firms need to consider what investment time frame they are working towards.

“Then you have to ask which of these time frames can we add the most value to? What data do we have access to? And then it goes into what sort of questions can we answer using this data over these time frames?” comments Ellis.
 

Drilling for the New Oil

If data is the new oil, then how trading firms “drill” it in order to generate alpha becomes increasingly important. Galen Stops reports.

So often has the phrase been used recently that it’s in danger of becoming something of a cliché but, apparently, data is the new oil.

To see evidence of this, look no further than the technology giants that have emerged out of Silicon Valley. Yes, Facebook doesn’t charge users money for the social media platform it provides, but is it free? Arguably, users “pay” with the data that they create via their interactions on the platform, which Facebook is then free to use and sell to generate profits.