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Blockchain, Cryptocurrency, and Artificial Intelligence in Finance Read chapter Read first chapter

2021 | OriginalPaper | Chapter

Alternative Data, Big Data, and Applications to Finance

Authors : Ben Charoenwong, Alan Kwan

Published in: Fintech with Artificial Intelligence, Big Data, and Blockchain

Publisher: Springer Singapore

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Abstract

Financial technology has often been touted as revolutionary for financial services. The promise of financial technology can be ascribed to a handful of key ideas: cloud computing, smart contracts on the blockchain, machine learning/AI, and finally—big and alternative data. This chapter focuses on the last concept, big and alternative data, and unpacks the meaning behind this term as well as its applications. We explore applications to various domains such as quantitative trading, macroeconomic measurement, credit scoring, corporate social responsibility, and more.

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previous chapter Blockchain, Cryptocurrency, and Artificial Intelligence in Finance
next chapter Application of Big Data with Fintech in Financial Services
Footnotes
1
To be more precise, there exists an investment strategy that provides statistically robust “alpha,” relative to a benchmark regression. A typical benchmark is the market returns or the Fama-French three-factor model.
 
2
\( \frac{{{\text{sales}}_{t} - {\text{sales}}_{{\left\{ {t - 4} \right\}}} }}{\sigma } \) where \( \sigma \) is the standard deviation of the prior annual sales growth \( {\text{sales}}_{t - k} - {\text{sales}}_{t - k - 4} \).
 
3
There exists a handful of studies in this vein today, but their data are subject to massive back-filling issues. LinkedIn launched in 2007, with most databases gathering this data emerging in 2013. Many of these studies on employee turnover back-fill the history, leading to many issues related to survivorship bias. Further, it is not clear that the time an employee moves is equal to when it is reported on a Web site such as LinkedIn, because employees may do so on a lag or delay.
 
4
Reuters, July 18, 2018. “UPDATE 1-Ghana’s economy seen up to 40 pct bigger after data overhaul—officials.”
 
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Metadata
Title
Alternative Data, Big Data, and Applications to Finance
Authors
Ben Charoenwong
Alan Kwan
Copyright Year
2021
Publisher
Springer Singapore
Book
Fintech with Artificial Intelligence, Big Data, and Blockchain

Print ISBN: 978-981-336-136-2

Electronic ISBN: 978-981-336-137-9

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-981-33-6137-9_2

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