The Dow Jones Industrial Average (DJIA) index witnessed a significant fall in the past week amid concerns over a surge in bond yields and trade war between the US and China. In our view, news sentiment based strategy can help investors to predict an impending movement in the market.
Heckyl has developed FiND Sentiment Indicator which reflects the underlying sentiment of news coverage on the companies within the index. The moving average strategy based on FiND Sentiment Indicator signals the potential impact of the news sentiment on the value of the underlying index.
For instance, FiND Sentiment Indicator turned bearish 4-days prior to the 832 points crash in the DJIA index on October 10. Our system analyzed 1,01,066 news items for 30 companies within the DJIA index for the past 6-months. Out the total, 74,780 news items were positive, while 26,286 news items were negative.
Our system generated bullish/ bearish signals for the DJIA index based on the crossover of fast-moving (10-days) and slow-moving (30-days) averages of FiND Sentiment Indicator.
Our back-testing proved the application of FiND Sentiment Indicator based strategy for the DJIA index. Our strategy (i.e. Buy/sell on bullish/bearish signal and hold the position till the signal reverses) has outperformed the DJIA index by a wide margin in the past 6-months.
To know more about FiND News and Sentiment Analytics, email us at email@example.com
India’s national carrier Air India led the news share of voice (SoV) among major airlines for the second quarter in a row. On the other hand, the news SoV for Interglobe Aviation remained at the second position in the June 2018 quarter. Meanwhile, Jet Airways and SpiceJet’s news SoV for the quarter stood at third and fourth positions respectively.
[Image 1: Top 4 airlines’ web news share of voice]
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Heckyl’s FiND offers a singular repository to carry out deeper levels of due diligence for compliance risk assessment. Our unique alternative data platform allows screening of KMPs, Directors, Companies, and Institutions from compliance perspective by performing a check against:
Recently, the Central Bureau of Investigation (CBI) summoned AirAsia India head R Venkataramanan to join ongoing probe on July 3 over AirAsia money laundering case. The Enforcement Directorate (ED) is also probing an alleged violation of the Foreign Exchange Management Act involving Air Asia, which is related to the transactions of over Rs. 12 crore with Singapore-based HNR Trading Pte Ltd.
Earlier, the CBI has also named HNR Trading and its director Rajendra Dubey in the Air Asia case as alleged lobbyists who used their influence to secure a permit for international scheduled air transport services. It is also being alleged that owner of the firm, Rajendra Dubey, had a suspected association with an international terrorist Hamid Reza Malakotipour. In June 2014, the US Department of Treasury added Malakotipour in OFAC list as a “Specially Designated Global Terrorist”.
Here, we present a use case of how FiND could have help Air Asia to perform due diligence on HNR Trading Pte Ltd in below. Read the rest of this entry »
Sun Pharmaceutical Industries witnessed a significant improvement in the positive media coverage during the June 2018 quarter. Regulatory approvals and encouraging earnings led the positive news coverage for Sun Pharma in the June 2018 quarter.
At the same time, the volume of negative news has also dropped sharply in the same period. As a result, the long-term news sentiment has improved towards the end of the quarter.
Moreover, the improvement in news sentiment was also reflected in the recent rally in Sun Pharma’s stock price. Net-net, the news cycle was favorable for India’s leading drug maker in the June 2018 quarter.
[Compare screen: Sun Pharma – Share Price, News Volume, and Sentiment]
Telecom operator Bharti Airtel has accelerated the pace of new product launches in the past 3-months to fight competition from rivals like Reliance Jio, Vodafone, and Idea.
FiND media coverage study showed that Bharti Airtel topped the product launch related news flow among major telecos consistently for the past 3-months. Moreover, the product launch related news updates from India’s largest telecom operator for the current quarter touched the highest level in the past 4-quarters.
[Image 1: Monthly product launch news volume for the leading telecos]
Our analysis showed that Bharti Airtel has ramped up new product launches significantly following the launched of postpaid plan by Reliance Jio on May 10. India’s largest telecom operator has launched new prepaid plans; various data and unlimited calling offers; affordable 4G smartphones; and Apple Watch 3 LTE during the past month. As a result, Bharti Airtel’s product launch news volume touched a multi-year high in May 2018.
[Image 2: Daily product launch news volume for Bharti Airtel and Reliance Jio] Read the rest of this entry »
The discovery and real-time monitoring of macroeconomic data are the two key gaps that the financial researchers face. To bridge this gap, Heckyl has introduced a unique Macroeconomic Data Analytics product.
Historically, Singapore and the US 10-year bond yields have witnessed strong positive correlation. However, the recent rally in US 10-year bond yield above 2.9% (given better-than-expected jobs data) has changed historical correlation with Singapore 10-year bond yield. In fact, this correlation has turned negative in the past 7 days.
(Correlation as on Jun. 6, 2018)
Given the mean-reverting nature of yields, does this signify an opportunity to trade in the fixed income market?
To know more about our Macroeconomic Data Analytics platform, email us at firstname.lastname@example.org
An analysis of media coverage on the leading air carriers in India has shown that Interglobe Aviation was the most affected airline by the disruption in flight services during the past 5-months.
Interglobe Aviation, the operator of IndiGo Airlines has dominated disruption related news flow among major Indian airlines in the past 5-months. It was followed by Air India and Jet Airways. On the other hand, SpiceJet attracted fewer news items related to disruption.
[Image 1: Compare news volume by sentiment and/ or category]
Technical issues, engine failure (A320 Neo planes), and flight delays & cancellations have disrupted operations of IndiGo Airlines during the past 5-months. Read the rest of this entry »