Many large Investment Banks, Hedge funds and Prop Trading companies are looking for Alternative Data to hedge and/or to make profitable trades. In this post I would like to share how Predictive Image Analytics can be used with Alternative Data Chart Images that are created on top of historical price data using various functions like arithmetical, mathematical, statistical, logical, scalar and vector functions. In this example we are at very early stage (Day 5) of the start of Jan 2010 series and it still has 14 more days to go. The image below on left is from 4-July-2002 and on right from 8-Jan-2010.
As on that day July 2002 series was in positive with 0.92% from series open but it had ended the series in negative at -5.30% while Jan 2010 series was in positive at 0.64% from series open. Predictive Image Analytics identified the match with > 90% confidence. Jan 2010 series ended in negative at -6.84%. Nifty was in 1050 range in July 2002 and in 5250 range in Jan 2010. Had it been pure price chart it would not have been comparable but because of Alternative Data Chart Images it is possible to identify and predict a pattern.
Article by Sanjey Mota, LinkedIn