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Stephen Morse - FinTech, Big & Alternative Data
leveraging alternative data sources
to gain critical advantage
part 1: social data alpha
Stephen Morse | @stephenwmorse
Neudata | www.neudata.co
Stephen Morse – FinTech, Big & Alternative Data
Stephen Morse, CAIA
Consultant & Advisor in areas of FinTech, AI and Big Data
Neudata - alternative data discovery and intelligence
20 years in FinTech, data, disruptive technologies
– firms acquired/now a part of Barra/MSCI, Dow Jones, ICE
and Twitter
Formerly, Twitter - head, global financial data partnerships
Neudata
Stephen Morse – FinTech, Big & Alternative Data
what does this guy have in common…
Stephen Morse – FinTech, Big & Alternative Data
what does this guy have in common…with this guy?
Stephen Morse - FinTech, Big & Alternative Data
leveraging alternative data sources
to gain critical advantage
part 1: social data alpha
Stephen Morse | @stephenwmorse
Neudata | www.neudata.co
Stephen Morse – FinTech, Big & Alternative Data
market landscape
Stephen Morse - FinTech, Big & Alternative Data
big data…alternative data… new data…
Stephen Morse – FinTech, Big & Alternative Data
alternative
data:
Stephen Morse - AI, Big, Alternative DataStephen Morse - AI, Big, Alternative Data
Stephen Morse – FinTech, Big & Alternative Data
alternative data classification & tagging
Source: Neudata Ltd © 2016 ; www.neudata.co
Stephen Morse - FinTech, Big & Alternative Data
social data
Stephen Morse – FinTech, Big & Alternative Data
why care about social media data?
Source: Giphy
Stephen Morse – FinTech, Big & Alternative Data
Trump tweets - markets move
Source: CNN; Getty Images
Stephen Morse – FinTech, Big & Alternative Data
Trump on Toyota ($TM)
Source: Buzzfeed; Twitter
Stephen Morse – FinTech, Big & Alternative Data
Toyota ($TM) down 3.1%
Source: Buzzfeed; Bloomberg
Stephen Morse – FinTech, Big & Alternative Data
8 billion social media accounts
0 400 800 1200 1600 2000 2400
Facebook
WhatsApp
WeChat
QQ
Instagram
Tumblr
Twitter
Snapchat
Pinterest
LinkedIn
2.06 B
106
328
Monthly active users; select social networks charted. Source: Statista (Sept 2017)
Stephen Morse – FinTech, Big & Alternative Data
social media for finance
FinTech Ecosystem
Stephen Morse - FinTech, Big & Alternative Data
estimates data
Stephen Morse – FinTech, Big & Alternative Data
crowd-sourced estimates
Source: Estimize
Stephen Morse – FinTech, Big & Alternative Data
crowd-sourced estimates
Source: Estimize
Stephen Morse - FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators
Stephen Morse – FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators
Source: Thomson Reuters
Stephen Morse – FinTech, Big & Alternative Data
Wells Fargo ($WFC) - fake account scandal
Source: Bloomberg. Chart: Wells Fargo.
Stephen Morse – FinTech, Big & Alternative Data
sentiment, volatility and other trading indicators
Chart: Mylan ($MYL). Source: Bloomberg
Stephen Morse - FinTech, Big & Alternative Data
fundamental and consumer insights
Stephen Morse – FinTech, Big & Alternative Data
Pokémon GO' craze
Sources: Forbes; LikeFolio; Google Images
Stephen Morse – FinTech, Big & Alternative Data
Stranger Things sustains social popularity 90 days on
Netflix ($NFLX) +19%
Sources: TickerTags
Stephen Morse – FinTech, Big & Alternative Data
foot traffic down at Chipotle ($CMG) - stock falls 6%
Source: Foursquare
Stephen Morse - FinTech, Big & Alternative Data
breaking news / event detection
Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn
Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn tweets on Apple ($AAPL)
Stephen Morse – FinTech, Big & Alternative Data
Carl Icahn’s tweet boosts Apple ($AAPL) $17B
Source: Yahoo!Finance
Stephen Morse – FinTech, Big & Alternative Data
Elon Musk tweets on Tesla ($TSLA)
Source: IBTimes; Twitter
Stephen Morse – FinTech, Big & Alternative Data
Elon Musk tweets - Tesla ($TSLA) jumps 2%
Source: IBTimes
Stephen Morse – FinTech, Big & Alternative Data
Hillary Clinton tweets on drug price gouging
Source: Fortune
Stephen Morse – FinTech, Big & Alternative Data
Clinton tweets - biotech ETF ($IBB) down 5%
Source: Fortune
Stephen Morse – FinTech, Big & Alternative Data
28% of M&A deals break on Twitter
Source: Selerity
Stephen Morse – FinTech, Big & Alternative Data
EU / Ireland tax ruling on Apple ($AAPL)
Source: Bloomberg; Twitter
Stephen Morse – FinTech, Big & Alternative Data
EU / Ireland tax ruling on Apple ($AAPL), down 3%
Source:Bloomberg
Stephen Morse – FinTech, Big & Alternative Data
Verizon ($VZ) reaches agreement with unions
Source: DataMinr
Stephen Morse – FinTech, Big & Alternative Data
refinery explosion - distillate futures spike 5%
Source: DataMinr : Google Images; WBRZ.com
Stephen Morse - FinTech, Big & Alternative Data
geo-political
Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: CNN; Gokhan Tan; Getty Images
Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: Bloomberg; Twitter
Stephen Morse – FinTech, Big & Alternative Data
Turkish attempted coup unfolds on social media
Source: Bloomberg
Stephen Morse – FinTech, Big & Alternative Data
Brexit
Source: Bloomberg
Stephen Morse - FinTech, Big & Alternative Data
view from the ivory tower
Stephen Morse – FinTech, Big & Alternative Data
Twitter predictive of unemployment numbers
Source: University of Michigan Job Loss Index; The Wall Street Journal
Stephen Morse – FinTech, Big & Alternative Data
view from the ivory tower
• The Wisdom of Twitter Crowds: Predicting Stock Market Reactions to FOMC Meetings via Twitter Feeds - Andrew Lo, MIT
• The Value of Crowdsourcing: Evidence from Earnings Forecasts - Adebambo, Bliss - University of San Diego
• The wisdom of the crowds: crowdsourcing earnings estimates - Deutsche Bank
• A nonlinear impact: evidences of causal effects of social media on market prices - Souza, Aste, University College London
• Quantifying the effects of online bullishness on international financial markets - Mao, Counts, Bollen - ECB
• Computing trading strategies based on financial sentiment data using evolutionary optimization - Ronald Hochreiter
• The 'Sixth' Factor -- Social Media Factor Derived Directly from Tweet Sentiments - Liew, Budavari - Johns Hopkins University
• Using Social Media to Measure Labor Market Flows - Shapiro et al., University of Michigan
• Using Tweets to Predict the Stock Market - Hu, Jiao, Zhu - Stanford University
Stephen Morse - FinTech, Big & Alternative Data
Thank you!
Stephen Morse | @stephenwmorse
+1-917-553-4845 | stephenwmorse@gmailcom
Neudata …alternative data discovery and intelligence
www.neudata.co

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Stephen morse sharable

  • 1. Stephen Morse - FinTech, Big & Alternative Data leveraging alternative data sources to gain critical advantage part 1: social data alpha Stephen Morse | @stephenwmorse Neudata | www.neudata.co
  • 2. Stephen Morse – FinTech, Big & Alternative Data Stephen Morse, CAIA Consultant & Advisor in areas of FinTech, AI and Big Data Neudata - alternative data discovery and intelligence 20 years in FinTech, data, disruptive technologies – firms acquired/now a part of Barra/MSCI, Dow Jones, ICE and Twitter Formerly, Twitter - head, global financial data partnerships Neudata
  • 3. Stephen Morse – FinTech, Big & Alternative Data what does this guy have in common…
  • 4. Stephen Morse – FinTech, Big & Alternative Data what does this guy have in common…with this guy?
  • 5. Stephen Morse - FinTech, Big & Alternative Data leveraging alternative data sources to gain critical advantage part 1: social data alpha Stephen Morse | @stephenwmorse Neudata | www.neudata.co
  • 6. Stephen Morse – FinTech, Big & Alternative Data market landscape
  • 7. Stephen Morse - FinTech, Big & Alternative Data big data…alternative data… new data…
  • 8. Stephen Morse – FinTech, Big & Alternative Data alternative data: Stephen Morse - AI, Big, Alternative DataStephen Morse - AI, Big, Alternative Data
  • 9. Stephen Morse – FinTech, Big & Alternative Data alternative data classification & tagging Source: Neudata Ltd © 2016 ; www.neudata.co
  • 10. Stephen Morse - FinTech, Big & Alternative Data social data
  • 11. Stephen Morse – FinTech, Big & Alternative Data why care about social media data? Source: Giphy
  • 12. Stephen Morse – FinTech, Big & Alternative Data Trump tweets - markets move Source: CNN; Getty Images
  • 13. Stephen Morse – FinTech, Big & Alternative Data Trump on Toyota ($TM) Source: Buzzfeed; Twitter
  • 14. Stephen Morse – FinTech, Big & Alternative Data Toyota ($TM) down 3.1% Source: Buzzfeed; Bloomberg
  • 15. Stephen Morse – FinTech, Big & Alternative Data 8 billion social media accounts 0 400 800 1200 1600 2000 2400 Facebook WhatsApp WeChat QQ Instagram Tumblr Twitter Snapchat Pinterest LinkedIn 2.06 B 106 328 Monthly active users; select social networks charted. Source: Statista (Sept 2017)
  • 16. Stephen Morse – FinTech, Big & Alternative Data social media for finance FinTech Ecosystem
  • 17. Stephen Morse - FinTech, Big & Alternative Data estimates data
  • 18. Stephen Morse – FinTech, Big & Alternative Data crowd-sourced estimates Source: Estimize
  • 19. Stephen Morse – FinTech, Big & Alternative Data crowd-sourced estimates Source: Estimize
  • 20. Stephen Morse - FinTech, Big & Alternative Data sentiment, volatility and other trading indicators
  • 21. Stephen Morse – FinTech, Big & Alternative Data sentiment, volatility and other trading indicators Source: Thomson Reuters
  • 22. Stephen Morse – FinTech, Big & Alternative Data Wells Fargo ($WFC) - fake account scandal Source: Bloomberg. Chart: Wells Fargo.
  • 23. Stephen Morse – FinTech, Big & Alternative Data sentiment, volatility and other trading indicators Chart: Mylan ($MYL). Source: Bloomberg
  • 24. Stephen Morse - FinTech, Big & Alternative Data fundamental and consumer insights
  • 25. Stephen Morse – FinTech, Big & Alternative Data Pokémon GO' craze Sources: Forbes; LikeFolio; Google Images
  • 26. Stephen Morse – FinTech, Big & Alternative Data Stranger Things sustains social popularity 90 days on Netflix ($NFLX) +19% Sources: TickerTags
  • 27. Stephen Morse – FinTech, Big & Alternative Data foot traffic down at Chipotle ($CMG) - stock falls 6% Source: Foursquare
  • 28. Stephen Morse - FinTech, Big & Alternative Data breaking news / event detection
  • 29. Stephen Morse – FinTech, Big & Alternative Data Carl Icahn
  • 30. Stephen Morse – FinTech, Big & Alternative Data Carl Icahn tweets on Apple ($AAPL)
  • 31. Stephen Morse – FinTech, Big & Alternative Data Carl Icahn’s tweet boosts Apple ($AAPL) $17B Source: Yahoo!Finance
  • 32. Stephen Morse – FinTech, Big & Alternative Data Elon Musk tweets on Tesla ($TSLA) Source: IBTimes; Twitter
  • 33. Stephen Morse – FinTech, Big & Alternative Data Elon Musk tweets - Tesla ($TSLA) jumps 2% Source: IBTimes
  • 34. Stephen Morse – FinTech, Big & Alternative Data Hillary Clinton tweets on drug price gouging Source: Fortune
  • 35. Stephen Morse – FinTech, Big & Alternative Data Clinton tweets - biotech ETF ($IBB) down 5% Source: Fortune
  • 36. Stephen Morse – FinTech, Big & Alternative Data 28% of M&A deals break on Twitter Source: Selerity
  • 37. Stephen Morse – FinTech, Big & Alternative Data EU / Ireland tax ruling on Apple ($AAPL) Source: Bloomberg; Twitter
  • 38. Stephen Morse – FinTech, Big & Alternative Data EU / Ireland tax ruling on Apple ($AAPL), down 3% Source:Bloomberg
  • 39. Stephen Morse – FinTech, Big & Alternative Data Verizon ($VZ) reaches agreement with unions Source: DataMinr
  • 40. Stephen Morse – FinTech, Big & Alternative Data refinery explosion - distillate futures spike 5% Source: DataMinr : Google Images; WBRZ.com
  • 41. Stephen Morse - FinTech, Big & Alternative Data geo-political
  • 42. Stephen Morse – FinTech, Big & Alternative Data Turkish attempted coup unfolds on social media Source: CNN; Gokhan Tan; Getty Images
  • 43. Stephen Morse – FinTech, Big & Alternative Data Turkish attempted coup unfolds on social media Source: Bloomberg; Twitter
  • 44. Stephen Morse – FinTech, Big & Alternative Data Turkish attempted coup unfolds on social media Source: Bloomberg
  • 45. Stephen Morse – FinTech, Big & Alternative Data Brexit Source: Bloomberg
  • 46. Stephen Morse - FinTech, Big & Alternative Data view from the ivory tower
  • 47. Stephen Morse – FinTech, Big & Alternative Data Twitter predictive of unemployment numbers Source: University of Michigan Job Loss Index; The Wall Street Journal
  • 48. Stephen Morse – FinTech, Big & Alternative Data view from the ivory tower • The Wisdom of Twitter Crowds: Predicting Stock Market Reactions to FOMC Meetings via Twitter Feeds - Andrew Lo, MIT • The Value of Crowdsourcing: Evidence from Earnings Forecasts - Adebambo, Bliss - University of San Diego • The wisdom of the crowds: crowdsourcing earnings estimates - Deutsche Bank • A nonlinear impact: evidences of causal effects of social media on market prices - Souza, Aste, University College London • Quantifying the effects of online bullishness on international financial markets - Mao, Counts, Bollen - ECB • Computing trading strategies based on financial sentiment data using evolutionary optimization - Ronald Hochreiter • The 'Sixth' Factor -- Social Media Factor Derived Directly from Tweet Sentiments - Liew, Budavari - Johns Hopkins University • Using Social Media to Measure Labor Market Flows - Shapiro et al., University of Michigan • Using Tweets to Predict the Stock Market - Hu, Jiao, Zhu - Stanford University
  • 49. Stephen Morse - FinTech, Big & Alternative Data Thank you! Stephen Morse | @stephenwmorse +1-917-553-4845 | stephenwmorse@gmailcom Neudata …alternative data discovery and intelligence www.neudata.co