When considering investments, hedge funds and investment firms must minimize risk exposure while maximizing opportunities for profit. Data modelling and analytics play a crucial role in accelerating the time to insight - whether for undertaking third-party due diligence or conducting financial, legal, competitor and sentiment analysis. The damaging impact of disruption on stock prices only emphasize the importance of tracking the macroeconomic effects of market-moving events and predicting how a company will act in the face of a future crisis.
Amid the mountain of data available, alternative data has been proven to be particularly effective. Alternative data represents 90% of all data in circulation in recent years, according to IBM. But the effectiveness of data modelling depends on having the right datasets available.