RiskTech Forum

Refinitiv: Helping quant investors to find alpha

Posted: 16 April 2019  |  Author: Shirley Birman  |  Source: Refinitiv

Quant investors and fund managers must cut through a mass of data in order to build and backtest their investment strategies. How are Refinitiv's unique content sets and tools, including I/B/E/S estimates, Datastream and StarMine analytics, adding value in the #SearchForAlpha?

  1. Quantitative investing methods are being leveraged more extensively, making it particularly important for investors to obtain unique data sets and factors that add value.
  2. Refinitiv is a strategic partner in helping quant investors to find alpha, thanks to our comprehensive and detailed market, economic and company data.
  3. StarMine utilises I/B/E/S estimates, Reuters Fundamentals and other Refinitiv content to provide robust alpha generating predictive analytics and quant models.

Quantitative investing is attracting more attention as investors evaluate an increasing number of data sets, time horizons, trends and computer models.

A wider user base is deploying systematic tools across workflows as quantitative methods are being leveraged more extensively. This increased competition, along with the need to develop differentiated ideas with speed to market, has become critical to achieving alpha.

With investment strategies leveraging more disparate data sets than ever before, it has become increasingly important to obtain unique data and find factors that add value.

Quant investors and fund managers need to develop unique approaches using the best tools — at the speed of today’s markets. The key to unlocking alpha is access to a leading provider of disparate, unique and valuable data.

Best-in-class estimates data

Refinitiv delivers the most comprehensive and detailed market, economic and company data available.

The Refinitiv toolbox contains unique time series data for millions of global financial instruments, securities and indicators across multiple asset classes.

The content also features historical databases covering macroeconomic data for more than 240 markets, as well as specialised ESG ranking data, commodities spot prices, interest and exchange rate data and futures and options trading-related information.

Find investment research from Refinitiv and other world-leading analysts at Destination Quant.

How can Refinitiv be a quant investor’s strategic partner?

Best-in-class estimates data can be found at I/B/E/S – an industry-leading global database of 22,000 active companies and 900 brokers, across more than 220 key financial measures. I/B/E/S variants span various delivery platforms, as well as update frequencies such as end-of-day, intraday and real-time.

I/B/E/S by numbers. Helping quant investors to find alpha

Datastream benefits

Worldscope Fundamentals and Reuters Fundamentals address the complexity and inconsistencies behind financial accounting practices.

These datasets utilise uniform definitions and standardised statement organisation to provide investors with a competitive edge when it comes to global insights and analysis.

With Worldscope and Reuters Fundamentals, quantitative investors can build and backtest factors utilising the global company-specific, as-reported data, which contains deep histories going back to the early 1980s.

Quant investors can cut through the mass of macroeconomics data with Datastream, which serves up a historical financial database containing more than 35 million individual instruments or indicators, across all major asset classes.

It features 65 years of data across 175 countries, allowing investors to interpret market trends, economic cycles and the impact of world events.

Datastream’s Point in Time data allows investors to backtest and validate models with economic and company data as originally reported — and as it evolved. Investors can also explore relationships among data series, perform correlation analysis, and research countries, regions and sectors.

StarMine analytics

StarMine utilises I/B/E/S estimates, Reuters Fundamentals and other Refinitiv content to provide robust alpha generating predictive analytics and quant models.

StarMine Analytics are best-of-breed proprietary algorithms that lead to more accurate estimates and serve as powerful inputs into models. StarMine also provides robust stock selection factors that span analyst revisions, valuation, price momentum and earnings quality.

For research papers which use Refinitiv’s capabilities and data in the quant investing sphere, go to Destination Quant.

StarMine models. Helping quant investors to find alpha

StarMine Smart Money models leverage information from the actions of informed investors, such as financial institutions, short sellers and corporate insiders, whose movements may predict changes in stock prices. StarMine Credit Risk models quantitatively assess and predict credit risk and the probability of default.

Destination Quant