Information provider Dow Jones & Company has launched Dow Jones News Analytics, a web-based software application that enables hedge funds and banks to build news-oriented quantitative models for algorithmic trading. The application, developed in partnership with RavenPack, an analytics consultancy, works with Dow Jones’s real-time feed and continuously updated 20-year news archive, and can both present results graphically on a screen and feed them into a firm’s automated trading systems.
Dow Jones News Analytics is the latest Dow Jones offering for algorithmic and quantitative specialists. It uses news coverage from Dow Jones’s 2,600 news staff and more than 130 news bureaux around the world. The complete line-up includes Dow Jones News & Archives for Algorithmic Applications, the text-based real-time feed and 20-year archive that work with Dow Jones News Analytics, and the recently launched Dow Jones Elementized News Feed. The
firm says this feed delivers news in precise and discrete elements in XML-tagged fields, providing computer-readable news data for direct integration into trading, execution and other models.
“Dow Jones has a long, renowned history of providing the trusted, real-time news and information that drives market decisions,” says Dennis Cahill, senior vice-president and chief product officer, Dow Jones Enterprise Media Group. “Our latest solution, Dow Jones News Analytics, expands on this commitment, providing algorithmic and quantitative specialists with a turnkey solution that powers trading strategies while reducing infrastructure and development costs.”
The company says Dow Jones News Analytics is its first hosted solution to combine news, archives and analytics tools and allow users to transform Dow Jones’s text-based archive into numerical data. It adds that using RavenPack’s computational linguistics technology and embedded statistical tools, Dow Jones News Analytics can identify trends and correlations in news and sentiment for most asset classes or instruments.
This data is graphically displayed and manipulated against streaming and historical price and volume data. The firm says this enables analysts and traders to design, develop and deploy proprietary models for trading, arbitrage and back-testing. RavenPack’s systems are also scaled to allow the real-time, tick-by-tick analysis of large volumes of news in Dow Jones News Analytics.
“We are proud to expand our relationship with Dow Jones,” says Armando Gonzalez, president and CEO of RavenPack International. “With Dow Jones’s leadership in news and our expertise in information analysis, Dow Jones News Analytics puts news-enabled algorithms within the reach of analysts and traders at firms of all sizes.”
Dow Jones News Analytics will be demonstrated at TradeTech Europe at Le Palais des Congrès, Paris, from 24-27 April 2007.