A Few Notes on The Book of Alternative Data

A subscriber suggested review of The Book of Alternative Data: A Guide for Investors, Traders, and Risk Managers , a 2020 book by Alexander Denev and Saeed Amen. In this book, the authors address “the ever growing importance of data, and in particular, alternative data. We live in a world, which is rich with data, where many datasets are accessible and available at a relatively low cost. …This book is aimed at investors who are in search of superior returns through nontraditional approaches. These methods are different from fundamental analysis or quantitative methods that rely solely on data widely available in financial markets. It is also aimed at risk managers who want to identify early signals of events that could have a negative impact, using information that is not present yet in any standard and broadly used datasets.” Based on prior research and their experience, they conclude that:

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