Measuring risk through multilingual AI

Synopsis: With English being the number one language when it comes to communication across territories, it does come as a surprise that more than 40% of the information on the web is in languages other than English. The Chinese language constitutes a bulk of the 40%. But how is this relevant to the financial industry? As trade grows between countries and firms, a major problem for investors is measuring risk in markets where English is not the primary language. In such countries, information discovery becomes a big challenge for investors. Whenever a company finds itself in controversy, there is a good chance that the local language media would pick up the news first. The mainstream English media, as has been seen in the past, generally picks up the news with a lag. For a savvy investor, it becomes essential to keep track of such controversies that could affect the portfolio. For companies operating in emerging markets such as China, Turkey, and Brazil, there is also the other inherent risk of broader political upheaval (Turkey coup), governance issues (South Korea chaebols), etc. To tackle the above mentioned hurdles, investors need to be aware of the news being reported by the local language media. EMAlpha’s multilingual AI can track news in any language in the world and classify those into various risk and sentiment categories. This not only helps investors with measuring risk in global markets but also allows them to invest as per their choice of investment theme.