Data In Harmony partners with leading analytics and technology provider Trendrating to offer the company’s trend capture ratings data and analytics to benefit DIH’s institutional clients and prospects.
Austin, TX (October, 15, 2020) — DIH has partnered with Trendrating to offer the company’s trend capture ratings data and analytics, which dove-tail neatly with DIH’s existing data offering. Portfolio managers and quantitative analysts can now add a robust methodology to rate price trends, validate investment ideas, improve risk controls and capture additional alpha. Such advanced analytics are a powerful complement to both fundamental and quantitative investment approaches.
“Institutional investors who integrate trend capture analytics into their decision process can benefit from more accurate trend assessments.”
Tom Myers
Founder & Principal, DIH
Identifying stock trends consistently is a challenge, no matter where in the cycle the market may be. Yet capturing trends is crucial to the success of any investment strategy, no matter its style or philosophy. Institutional investors already analyze fundamental and quantitative data. So why do they fail to properly identify and measure medium- to long-term trends?
Most approaches fail because:
- Traditional technical analysis is inconsistent across different cycles and market types
- Momentum investing tends to be late due to fixed time windows that require time to adjust to fast-changing trends
- Relying on fundamentals alone neglects to consider other factors that influence trends
- Price movement and fundamentals are increasingly out of sync
It’s no wonder that more than 88% of all USA stock fund managers have underperformed the S&P Composite 1500 Index over the past 15 years, according to the S&P Indices Versus Active (SPIVA) Scorecard, through March 2020.
Return dispersion is inherent in equity markets across different market conditions. In most periods, the majority of the aggregate return contribution is concentrated in circa 20% of the constituents. The challenge for investment professionals is to be able to consistently identify this group of outperforming stocks on an ex-ante basis in order to profit from this inherent dispersion in cross-sectional returns. Trend capture analytics can help expose these dispersions through multiple levels of intelligence, including rating and scoring metrics that help identify the strongest investment trends — as well as pointing out those to avoid — typically over a time horizon of a few months to a few years.
More than 88% of all USA stock fund managers have underperformed the S&P Composite 1500 Index over the past 15 years.
Any investment strategy can be enhanced by a better synchronization with actual trend developments, especially considering the weakness in correlation between fundamental analysis and price action. End users who integrate trend capture analytics into their decision process can benefit from more accurate trend assessments, vital data that fill a critical gap of market intelligence in the workflow of asset managers.
Learn more about how DIH can make your data work better for you.
About Data In Harmony
Data In Harmony (DIH) is both a data consultant and a data provider. DIH’s data experts help companies find and on-board the data they need, as well as monetize their data to create new revenue streams. DIH also provides a wide variety of financial data, including trend capture analytics, reference data, corporate actions and more. DIH also offers alternative data, including real estate, class action lawsuits, bankruptcies and private company data. DIH licenses the same data engineering tools it uses to pull in raw data, process it and deliver finished data files to end-users in various formats.
DIH’s clients include startups, established firms and household name institutions located around the world. They choose to hire DIH to help improve data quality, reduce data costs and provide them with new quality data sets.
About Trendrating
Trendrating is a market leading provider of analytics and technology for professional equity investors. The company serves 100+ customers globally in the areas of asset management and wealth management. Trendrating has developed a proprietary, sophisticated model to rate securities, indices and portfolios. The rating captures medium term price trends on securities, assesses a portfolio’s exposure to bull vs. bear trends and supports a more effective and pro-active risk control. The mission of the company is to help customers to more effectively capture trends, profiting from bull markets and avoiding bear phases as this is the key to superior performance on a consistent basis.
Source: Cision PCWeb