siliconindia | | September 20198IN MY OPINIONREAL-TIME INTELLIGENCE FOR CAPITAL MARKETS: LEVERAGING AI TECHNOLOGY TO DETECT SIGNALS FOR IMPROVED MARKET INSIGHTBy Vikram Mahidhar, SVP, RAGE FrameworksHaving completed FCA from the Institute of Chartered Accountants of India, Sachin has close to two decades of experience in the BFS industry with specialisation in Finance Transformation, Accounting & Finance, Shared Services Management, Financial Process Management, ERP Implementation, and Audits.he effect that information has on security prices has been at the heart of finan-cial economics research for decades. The general con-sensus is that superior re-turns can be achieved with superior information.However, monitoring what fuels stock performance is a constant chal-lenge for active investment managers.Active managers are constantly attempting to find inefficiencies in the markets. They do this by using a unique variety of strategies to build portfolios, based on the understanding and insight of their research staff and the information they are able to process. In today's world, monitoring the wealth of information presents a unique challenge unlike ever before.The effectiveness of any active investment strategy critically de-pends on the ability to process the enormous amount of information that is constantly arriving. A firm is im-pacted not just by news related to it but by any event or information that can impact its operations or business model; for example, a new product in-troduction by a competitor or a mac-roeconomic development that drives demand for the firm's products. In fact, the number of ways a firm can be impacted is both large and complex, and requires extensive monitoring and interpretation of the information universe. Relevant information may not even contain the firm's name at all, but could have a second or third order effect on it.The ability to quickly assess events reported in the news, emerging research, blogs, and more is essen-tial to having an effective investment strategy. However, the incredibly high frequency and heterogeneity of information flow now far outstrips the capacity of investment managers, asset managers, hedge fund manag-ers, quantitative managers and other T
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