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News Sentiment Watch and How Portfolio Managers Can Use It for Systematic Trading?

As we saw in our recent posts, the markets have reacted strongly to Corona Virus related news sentiment. While it remains topical, we will try to regularly post a heat map of our country level sentiment score for Corona Virus.

Corona Virus Sentiment Watch: March 3rd, 2020 (Source: EMAlpha.com)

Methodology: We have used our proprietary sentiment measure to first find the raw sentiment for each country for news related to Corona Virus. The raw scores where then Z-scored for standardization.

China, Thailand and Iran saw the most negative sentiments (among the countries shown above). England was saw the least negative sentiment. As the daily sentiment changes for a number of countries, we believe that the sentiment score, which is an input into our systematic trading model, can be valuable in risk managing or creating new signals for any international portfolio.

Research Team
EM Alpha LLC

For more EMAlphainsights on Emerging Markets, please visit https://emalpha.com/insights/. To know how you can use EMAlpha’s unstructured data on Emerging Markets for better investment decisions, please send us an email at research@emalpha.com.

About EMAlpha:

EMAlpha, a data analytics and investment management firm focused on making Emerging Markets (EMs) accessible to global investors and unlocking EM investing using machines. EMAlpha’s focus is on Unstructured Data as the EMs are particularly susceptible to swings in news flow driven investor sentiment. We use thoroughly researched machine learning tools to track evolving sentiment specifically towards EMs and EMAlpha pays special attention to the timely measurement of news sentiment for investors as these markets can be finicky and sentiment can be capricious.Our team members have deep expertise in research and trading in multiple Emerging Markets and EMAlpha’s collaborative approach to combining machine learning tools with a fundamental approach help us understand these markets better.

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