Alternative data sources for financial services has been getting a lot of attention recently. Like any trending topic, its uses and benefits can be hyped up a bit. Much of the attention has been around creating trading strategies with an edge (generating alpha). But it also applies to risk management and enhanced regulatory oversight. To better understand the utility of alternative data, this post presents the topic within a larger context that will help to put alternative data sources to use in the most efficient and practical manner possible.
This was first published on the Arcadia Data website.