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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