A short walkthrough on how the combination of three exciting fields; behavioural finance, alternative data and machine learning leads to new insights in to the stock market

Did you ever notice that you are more cautious in traffic after there has been a large accident in the news? Then you are aware that sometimes the human brain takes shortcuts that behavioural economists call heuristics. Additionally, you are probably aware that alternative (big) data is giving rise to new real-time insights. Finally, the fact that artificial intelligence, AI or machine learning is rapidly changing the world probably also hasn’t gone by unnoticed. In this paper I am going to describe how these three components (behavioural psychology, alternative data and AI) can be used to create an indicator for…


An AI model that enhances human intuition instead of replacing it

Alternative data and Machine Learning are gaining rapid traction in the investment industry. However AI and Machine learning still is not able to beat the market or most regular investors in a real life environment, even though the internet is full of articles predicting stock prices with 99% accuracy (overfitting is no joke). One can safely say there are domains where humans outperform AI and there are domains where it is the other way around. This also goes for investing. But why only use either human input or AI input when you can also combine them?

In this article Ill…


In a previous article I explained how behavioural flaws leads to predictive behaviour of investors and how to measure that. This lead to an innovative stock market indicator. In this article we will dig one level deeper and look at how sentiment can be used to get insight in niches of investing with actual examples. This article explains on which domains to focus and why, what metrics are important and finally some real-word examples. For all domains interactive dashboards are available at: Trend reports — Alternative Analytics (alternative-analytics.eu)

Policy sentiment vs SP500 — www.Alternative-Analytics.com

Which domains?

One could argue that some domains are more sensitive to sentiment than…


Did you ever notice that you are more cautious in traffic after there has been a large accident in the news? Then you are aware that sometimes the human brain takes shortcuts that behavioural economists call heuristics. Additionally, you are probably aware that alternative (big) data is giving rise to new real-time insights. Finally, the fact that artificial intelligence, AI or machine learning is rapidly changing the world probably also hasn’t gone by unnoticed. In this paper I am going to describe how these three components (behavioural psychology, alternative data and AI) can be used to create an indicator for…

AlternativeAnalytics

Hoping to add some creative ways of looking at quantitative finance

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