State Street Expands MediaStats Offering with Central Bank and Thematic Indicators
November 11 2020 - 8:30AM
Business Wire
New Indicators Will Help Investors Generate Timely Insights
Based on Tone of Global Central Banks and Broad Market
Narratives
State Street Corporation (NYSE:STT) today announced the launch
of State Street MediaStats Central Bank Indicators and State Street
MediaStats Thematic Indicators - two new quantitative investment
insights derived from digital media. The new indicators collect
unstructured data from tens of thousands of curated media sources
to quantify market behavior with respect to price and risk across
interest rate yields and foreign exchange.
“The tone of central banks influences the way investors behave,”
said Rajeev Bhargava, head of the Investor Behavior Research Team
at State Street Associates. “Academic research shows that monetary
tones may play a vital role in asset pricing and help anticipate
changes in yields. Our newest indicator scours traditional media,
social media, and company communications to measure aggregated
monetary tones of media coverage for a specific central bank—and
ultimately, gauge the degree of hawkishness in its monetary
policies. By aggregating monetary tones in media coverage, we are
now able to offer our clients insights on global currencies and
yields, and broad macroeconomic trends.”
“In today’s evolving market environment, investors need to
constantly pay attention to macro narratives and be able to quickly
assess their impact on investment strategies,” said Dr. Gideon
Ozik, managing partner and founder of MKT MediaStats. “Thus our new
thematic indicators provide a unique opportunity for investors to
obtain a differentiated perspective across asset classes based on
vast amounts of alternative data sources.”
State Street MediaStats’ full range of indicators now
includes:
- Central Bank Indicators that gauge the degree of
hawkishness in the monetary tones of 12 global central banks.
- Thematic Indicators that track 76 overall broad market
narratives.
- FX and Country Equity Media Indicators that use natural
language processing and machine learning to analyze large sets of
unstructured media data, comprising international and domestic
media, social media, business news and trading media. These
indicators measure intensity, sentiment and disagreement in media
coverage to assist portfolio managers in assessing the outlook for
33 foreign currencies and 44 global equity markets.
- Macro Linkages Indicators that track inter-asset
connectedness among country equity markets and currencies.
- Company Media Indicators that provide insights into
company dynamics using proprietary algorithms to measure the
abnormal intensity, conditional sentiment and disagreement in media
coverage of approximately 3,000 US listed individual
companies.
- Media Indicators that generate measures of the abnormal
intensity, conditional sentiment and disagreement in media coverage
of US sectors, industry groups and industries.
- Linkages Indicators that gauge the strength and impact
of inter-company relationships based on company co-mentions in
media for approximately 500 US listed large cap companies.
- Aggregate Linkages Indicators that track the dynamic
relationships between sectors, industry groups and industries based
on constituent company co-mentions in media coverage.
- Earnings Prediction Technology, or EPTech, which
analyzes large sets of consumer data to gauge patterns of digital
consumption for approximately 350 large US listed firms. These
patterns, reflective of consumer behavior in the real economy, can
provide investors with an additional, distilled input as they
formulate quarterly earnings estimates.
The State Street MediaStats indicators build on the capabilities
of State Street’s academic think tank, State Street Associates
(SSA), a division of State Street Global Markets. SSA bridges the
worlds of financial theory and practice, develops proprietary
investment indicators, differentiated analytics applications and
tailored investment strategies for institutional investors around
the world.
Click here to learn more about these indicators and to register
for ‘State Street LIVE: Research Retreat on November 18 and 19. Our
State Street LIVE events feature FinTech thought leaders, capital
markets experts and industry changemakers who discuss how
innovations in data and technology, global financial markets,
culture, and values are transforming the future of finance.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $36.6 trillion in assets
under custody and/or administration and $3.1 trillion* in assets
under management as of September 30, 2020, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of September 30, 2020 includes
approximately $81 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
About MKT MediaStats, LLC
State Street partner MKT MediaStats, LLC is a technology and
data analytics company, which combines expertise in data science
and financial economics to extract financial markets insights from
unique sets of untapped big data sources. MKT MediaStats LLC was
founded by Gideon Ozik, affiliate professor at École des Hautes
Etudes Commerciales du Nord (EDHEC) Business School and former
hedge fund manager at Société Générale; Professor Ronnie Sadka,
chair of the Finance Department at Boston College’s Carroll School
of Management; Hadar Shezifi, technology entrepreneur and former
architect at Neustar; and Professor Ken Froot, of Harvard Business
School, who is also a founding partner of State Street
Associates.
© 2020 State Street Corporation - All Rights Reserved
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Media Contact: Brendan Paul Bpaul2@statestreet.com +1 401
644 9182
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