Alternative Data- That can provide insights into companies and industries
There’s a lot of talk these days about “big data” and the insights that can be gleaned from large data sets. But what about “alternative data”? I got some information about it from Proxycurl
Let's Talk about What is Alternative Data-
Alternative data is data that is not traditionally used in financial analysis. This can include data from social media, satellite images, web traffic data, and more. While alternative data has been used for years by hedge funds and other institutional investors, it is only recently that the average investor has had access to this type of data.
What are the advantages of Alternative Data?-
One of the advantages of alternative data is that it can provide insights into companies and industries that would be difficult to obtain through traditional means. For example, social media data can give you an idea of how a company's products are being received by the public. Web traffic data can give you an idea of how popular a company's website is. And satellite images can give you an idea of the physical activity at a company's facilities.
Another advantage of alternative data is that it can be used to validate or invalidate your investment thesis. For example, if you're considering investing in a company that you believe is undervalued, you can use alternative data to see if the company is actually doing better or worse than its financials suggest.
What Alternative Data Includes?-
It includes
1. Social media data
2. Web browsing data
3. Mobile application data
4. Email receipts data
5. Credit card data
6. Location data
7. Profile picture data
8. People & Company data
Getting Started with Alternative Data-
If you're looking to get started with alternative data, there are a few things you need to keep in mind. First, you need to make sure that the data you're using is of high quality. There are a lot of providers of alternative data, and not all of them are created equal. Second, you need to make sure that the data you're using is timely. Data that's a month old is not going to be as useful as data that's been freshly collected.
The best company that offers some of the more exciting alternative data flavors is Proxycurl- People & Company alternative data.
Proxycurl is a strong data company with a demonstrable capacity for handling unstructured data. Its core strength in data enrichment capabilities of people and companies - offering insights into people profiles, companies profiles, work & personal email addresses and contact, jobs info, and more sets it apart.
Proxycurl offers excellent APIs that can drive and power the data-driven applications of hedge funds and investment companies. These APIs are extremely easy to use, with attractive pricing too. They are credit-based for as low as $0.01 per profile enrichment and thus do not tie users up with bulky, heavy subscriptions or contracts like many others.
Let's talk about more advantages of Alternative Data-
Finally,One of the advantages of alternative data is that it can provide insights into companies and industries that would be difficult to obtain through traditional means. For example, social media data can give you an idea of how a company's products are being received by the public. Web traffic data can give you an idea of how popular a company's website is. And satellite images can give you an idea of the physical activity at a company's facilities.
You need to make sure that you're using the data correctly. Just because a company's stock price is rising doesn't mean that the company is doing well. You need to look at the big picture and understand the underlying trends before making any investment decisions.
The question then isn't whether you should use alternative data, but when and how best to use it to get the most out of it.
Use ProxyCurl for the Alternative Data.
