Sentiment in Capital Markets
Sentiment is a powerful indicator of directional movement and volatility in capital markets. Investors use sentiment derived from SEC filings, transcripts, news, and other public sources to make multi-million dollar decisions about asset allocation, and as an input to trading models.
The public internet is the richest available source of unstructured information. This data is technically very difficult to mine, and is therefore under utilized. Making sense of it will take an ecosystem – diverse participants, diverse perspectives, and a rich variety of skill sets.
Mission: Equeum wants to launch a narrow text processing challenge to improve on an existing market trend model. We’ve developed an additive ensemble model to track trends in the SP500, and request proposals from data scientists to add features to our model in the first demonstration of the power of ecosystem-driven development.
This model will be distributed by channel partners to financial institutions, professionals, and independent analysts, and the proceeds will be distributed to contributors as incentive for continued development of the content that is most contributing to the success of the collective. In this way, we anticipate that the ecosystem will be efficient and self- organizing, while producing a richer collection of outputs due to the unstructured nature of the exploration and development as well as the synergies unlocked by proximity, which should drive the formation of symbiotic relationships between participants.