By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    football analytics
    The Role of Data Analytics in Football Performance
    9 Min Read
    data Analytics instagram stories
    Data Analytics Helps Marketers Make the Most of Instagram Stories
    15 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    What to Know Before Recruiting an Analyst to Handle Company Data
    6 Min Read
    AI analytics
    AI-Based Analytics Are Changing the Future of Credit Cards
    6 Min Read
    data overload showing data analytics
    How Does Next-Gen SIEM Prevent Data Overload For Security Analysts?
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Can Real-Time Search Help Hedge Funds?
Share
Notification Show More
Aa
SmartData CollectiveSmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > Can Real-Time Search Help Hedge Funds?
Uncategorized

Can Real-Time Search Help Hedge Funds?

Daniel Tunkelang
Last updated: 2009/06/25 at 2:14 PM
Daniel Tunkelang
3 Min Read
SHARE

I haven’t exactly been generous in my opinions about the widespread obsession with “real-time” search. But in today’s Telegraph there’s at least a story that makes sense in theory: “Hedge fund managers betting Twitter will give them an edge in rapid trading“.

In practice, I’m pretty skeptical, as is Gwen Robinson at the Financial Times Alphaville blog. She writes:

That’s very interesting, because several hedge fund managers we spoke to dismissed the idea variously as “all twatter” and “rubbish” – not least because Twitter has carved a reputation more for unfounded speculation and even sensational disinformation than for ground-breaking, market-moving alerts for alpha-hungry fund managers.

I’ll concede that time really is money for for hedge funds and other traders who need to make decisions before the rest of the market catches up. But I’m dubious that Twitter – let alone an automated processing of tweets – will enable traders to make better decisions…

More Read

big data tools including analytics and cloud computing

Data Shortcuts So You Can Spend More Time Managing Your Business

What Changes Will Big Data Analytics Bring?
Explaining Real-Time Predictive Analytics with Big Data [VIDEO]
Big Data Goes Real-Time
Predictive Analytics in the Marketplace: Insights from PAWCON

I haven’t exactly been generous in my opinions about the widespread obsession with “real-time” search. But in today’s Telegraph there’s at least a story that makes sense in theory: “Hedge fund managers betting Twitter will give them an edge in rapid trading“.

In practice, I’m pretty skeptical, as is Gwen Robinson at the Financial Times Alphaville blog. She writes:

That’s very interesting, because several hedge fund managers we spoke to dismissed the idea variously as “all twatter” and “rubbish” – not least because Twitter has carved a reputation more for unfounded speculation and even sensational disinformation than for ground-breaking, market-moving alerts for alpha-hungry fund managers.

I’ll concede that time really is money for for hedge funds and other traders who need to make decisions before the rest of the market catches up. But I’m dubious that Twitter – let alone an automated processing of tweets – will enable traders to make better decisions. Moreover, any success would immediately be gamed, along the lines of pump and dump scams. I suppose that hasn’t put a damper on the popularity of StockTwits, but popularity does not necessarily translate to profitability for the traders. I hear that Swoopo (a great example of exploiting behavioral economics) is popular, too.

If real-time search is to be useful – and I think it really should be called alerting – then the information it provides has to have some sort of quality assurance, and not just freshness. There’s almost certainly a trade-off, since it usually takes time to vet  information for quality, even if the vetting is through crowdsourcing. But that reality doesn’t seem to have sunk in yet for the real-time advocates. I say, give it time.

Link to original post

TAGGED: real-time
Daniel Tunkelang June 25, 2009
Share This Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

football analytics
The Role of Data Analytics in Football Performance
Analytics Big Data Exclusive
smart home data
7 Mind-Blowing Ways Smart Homes Use Data to Save Your Money
Big Data
ai low code frameworks
AI Can Help Accelerate Development with Low-Code Frameworks
Artificial Intelligence
data Analytics instagram stories
Data Analytics Helps Marketers Make the Most of Instagram Stories
Analytics

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

big data tools including analytics and cloud computing
AnalyticsBig DataBusiness IntelligenceCloud ComputingData CollectionExclusive

Data Shortcuts So You Can Spend More Time Managing Your Business

5 Min Read

What Changes Will Big Data Analytics Bring?

9 Min Read

Explaining Real-Time Predictive Analytics with Big Data [VIDEO]

1 Min Read

Big Data Goes Real-Time

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots
data-driven web design
5 Great Tips for Using Data Analytics for Website UX
Big Data

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?