AnalytixInsight Adds Unstructured Data Insights to CapitalCube Research Tool

The online portal incorporates fundamental company information and market data on peer-to-peer performance, the effectiveness of each company's operating strategy, earnings, drivers of margins, M&A transactions, credit and dividend analysis, and other factors that can be used to determine a company's valuation to produce on-demand daily fundamental research reports, portfolio evaluation, and screening tools on over 45,000 global equities and exchange traded funds. The vendor updates its database of fundamental and market data every night based on new filings and market information on each company, performing a total of around 100 billion computations per night.

Currently, AnalytixInsight uses structured datasets to derive its fundamental research, but is now in the final stages of establishing partnerships with several unnamed newswires and social media sentiment providers to leverage insight from unstructured data in addition to the structured data, says AnalytixInsight chief executive Chaith Kondragunta.

"There are plenty of players in the industry today who make a business from extracting structured data from unstructured news. For example, creating positive and negative indicators on newswires and social media, and tagging news with CUSIP codes─so we are in discussions with a few of them to take their output and put it back in our engine so we can enhance our analysis," Kondragunta says.

Types of information that AnalytixInsight is looking to add include investor sentiment on companies sourced from social media, company news announcements, financial figures and statistics from earnings predictions and earnings announcements, as well as any news that expresses sentiment on a company's management. The vendor is currently in the final stages of wrapping up agreements, and aims to add the new datasets to CapitalCube early in the fall, following a pilot phase in the coming months, Kondragunta adds.

The new data will serve as an additional source of data for users of CapitalCube. For example, hedge funds use the platform to perform peer-to-peer analysis and run basic searches to ascertain a fundamental view of companies, and use the vendor's stock screener to filter structured data by keywords rather than filtering stocks numerically, which is possible because CapitalCube tags its research with attributes such as "cash flow issues" or "no cash flow issues."

Over the past three months, the vendor has also seen interest from quantitative funds seeking to leverage AnalytixInsight's fundamental research database of more than 45,000 stocks going back almost 20 years for use in back testing and to inform their algorithmic trading strategies, Kondragunta adds.