State Street Expands MediaStats Range of Indicators
New FX and Country Media Indicators Added to Help Investors Gauge News Sentiment
September 25, 2018 10:04 AM Eastern Daylight TimeBOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced the addition of two new macro indicators, focused on currencies and countries, to its range of State Street MediaStats Indicators®. First launched in 2016 with State Street partner MKT MediaStats, the new indicators scan more than 100,000 digital media sources to help investors evaluate the impact of media sentiment on market behavior and, more broadly, industry and macroeconomic trends. The new FX and Country Equity indicators provide daily sentiment scores that help investors understand media perceptions of foreign currencies and global equity markets.
“Our clients are particularly interested in currencies and equities, so we have expanded the coverage of State Street MediaStats to provide insights on these markets in addition to our company-level indicators,” said Will Kinlaw, head of State Street Associates, a division of State Street Global Exchange. “Our new indicators offer investors a near real-time pulse of broad media sentiment that will help them assess market conditions.”
State Street MediaStats’ full range of indicators now includes:
FX and Country Equity Media Indicators that use natural language processing and machine learning to analyze large sets of unstructured media data, comprising international and domestic media, social media, business news and trading media. These proprietary indicators derive standardized measures of intensity, sentiment and disagreement in media coverage to assist portfolio managers in assessing the outlook for 33 foreign currencies and 44 global equity markets.
Earnings Prediction Technology, or EPTech, which analyzes large sets of consumer data to gauge interest in approximately 340 large US listed retail firms. These digital patterns, reflective of consumer behavior in the real economy, can provide investors with an additional, distilled input as they formulate quarterly earnings estimates.
Company Media Indicators that provide insights into company dynamics using proprietary algorithms to measure the abnormal intensity, conditional sentiment and disagreement in media coverage of approximately 3,000 US listed individual companies.
Linkages Indicators that gauge the strength and impact of inter-company relationships based on company co-mentions in media for approximately 500 US listed large cap companies.
“Our technology adjusts for a number of behavioral and statistical biases in media coverage. With the additional implementation of supervised machine learning to improve article relevancy in foreign exchange, we have created a stronger solution that can be easily incorporated into any investment process—quantitative or qualitative,” said professor Ronnie Sadka, chair of the Finance Department at Boston College’s Carroll School of Management and co-founder of MKT MediaStats.
State Street MediaStats Indicators build on the capabilities of State Street Associates, State Street’s academic think tank and a division of State Street Global Exchange. State Street Associates bridges the worlds of financial theory and practice, and develops proprietary investment indicators, differentiated analytics applications and tailored investment strategies for institutional investors around the world.
About MKT MediaStats, LLC
MKT MediaStats, LLC was founded by Gideon Ozik, affiliate professor at École des Hautes Etudes Commerciales du Nord (EDHEC) Business School and former hedge fund manager at Société Générale; Professor Ronnie Sadka, chair of the Finance Department at Boston College’s Carroll School of Management; Hadar Shezifi, technology entrepreneur and former architect at Neustar; and Professor Ken Froot, of Harvard Business School, who is also a founding partner of State Street Associates and FDO Partners.
About State Street
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $33.90 trillion in assets under custody and administration and $2.70 trillion* in assets under management as of June 30, 2018, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
*This figure is presented as of June 30, 2018 and includes approximately $53 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
Expiration Date: September 30, 2019
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LONDON & BOSTON--(BUSINESS WIRE)--AXA Investment Managers (AXA IM) today announced a collaboration with State Street and MKT MediaStats to evaluate data-driven indicators that help analyse economic and market information.
“Investor success in the coming years will continue to largely depend on the ability to rapidly access and synthesise an exponential amount of information. Our goal is to bridge the gap between financial decision making and academic thinking to help investors achieve their return and risk objectives.”
MKT MediaStats is focused on financial market implications of increasingly available ‘big data’ from multiple sources, and is founded and led by well-known academic researchers. It leverages and extends into the commercial realm of considerable academic research done by its partners. The State Street PriceStats inflation series is a daily measure of inflation derived from prices posted to public websites by hundreds of online retailers.
“AXA IM, MKT MediaStats and State Street share a commitment to exploring new data sources that can enhance our ability to make timely and well-informed investment decisions,” said Joseph Pinto, chief operating officer at AXA Investment Managers. “Leveraging these big-data solutions will allow us to advance our client service on multiple fronts. Not only are we increasing the amount of knowledge available to us, but we are also cutting down on the amount of time spent manually sorting through information resources. We are excited about the opportunities offered by big data and our collaboration with State Street and MKT MediaStats are two efforts in a series of initiatives we are exploring at AXA IM aimed at exploiting data for the benefit of our clients.”
“The digital age has vastly expanded the data sources available to investors, so much so that it has become imperative to consume and analyse information quickly and accurately,” said Jessica Donohue, chief innovation officer for State Street Global Exchange. “Investor success in the coming years will continue to largely depend on the ability to rapidly access and synthesise an exponential amount of information. Our goal is to bridge the gap between financial decision making and academic thinking to help investors achieve their return and risk objectives.”
MKT MediaStats was founded by Gideon Ozik, affiliate professor at Ecole des Hautes Etudes Commerciales du Nord (EDHEC) Business School and former hedge fund manager at Société Générale; Professor Ronnie Sadka, chair of the Finance Department at Boston College’s Carroll School of Management; Ken Froot, professor at Harvard Business School and founding partner of FDO Partners; and Hadar Shezifi, technology entrepreneur and former architect at Neustar. MKT uses unstructured data from many sources, including 25,000 distinct media sources, to derive a wide variety of indications of market behavior, such as sentiment, price movements, risk, and liquidity of individual assets.
The State Street PriceStats inflation indices are generated using software that scans the underlying code on public websites to capture the full array of products sold by online retailers, including food, beverages, electronics, apparel, furniture, household products, prescription drugs, and over-the-counter medicines. The technology monitors price fluctuations on roughly five million items sold by hundreds of online retailers in more than 70 countries. The PriceStats methodology is grounded in the extensive body of research of MIT professors Alberto Cavallo and Roberto Rigobon and their Billion Prices Project at MIT. Cavallo and Rigobon have leveraged this research and their expertise in monetary economics to develop the PriceStats indices.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $28 trillion in assets under custody and administration and $2 trillion* in assets under management as of December 31, 2015, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
* Assets under management include approximately $22 billion as of December 31, 2015, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.
About AXA Investment Managers
AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meeting their financial goals. By combining investment insight and innovation with robust risk management, we have become one of the largest asset managers in Europe with ambitions to become the chosen investment partner of investors around the world.
With approximately €669bn in assets under management as of end September 2015, AXA IM employs over 2,300 people around the world and operates out of 28 offices in 21 countries. AXA IM is part of the AXA Group, a global leader in financial protection and wealth management.
For more information, visit our website: www.axa-im.com
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