Top 10 Alternative Data Providers and APIs

March 10, 2020
Lucy Kelly Research Analyst at Datarade

Alternative data can mean essentially anything. Whether we talk about data collected from satellite imagery, scraped website data, or information collected upon point of sales, they all have one thing in common; hedge funds, asset managers and financial insitutions love them.

Why?

Alternative data is mainly used during financial analysts to predict a stock’s performance more accurately. Quality predictions can give an investor a competitive edge over others, thus being able to beat the average market returns. This difference is called the alpha.

With strong evidence of data’s power in financial analysis, there is a rising number of market research companies using cutting-edge technologies that provide a variety of alternative data for different markets.

How do you as an investor make sure that you’re talking to a provider who can take your decisions to the next level?

While there are many criteria to data quality which are often determined by your specific use case, there are a few companies which stand above the others.

We compiled a list of the top 10 alternative data companies on our platform. The list is here to help you get started in your search for alpha.

The Top 10 Alternative Data Providers and APIs

With over 700,000 public and private companies in their database, Thinknum enables strategists to create investment ideas rooted in alternative data. The company’s time specific data series helps both research firms and institutional investors in issues from alpha generation to risk mitigation. Thinknum indexes all of their real-time data trails using proprietary machine-learning techniques in order to offer directly actionable insights.

Quexopa is the leading alternative data provider for the South American markets. Headquartered in Panama, the company brings Latin American transaction insights into the fingertips of financial institutions and governments. In Mexico alone, Quexopa, covers over 250, 000 accounts with over 5 million monthly transactions.

Yewno has its focus on creating a fully comprehensive knowledge graph for hedge funds and asset managers. The company collects information from events and the public data which is then put into their artificial intelligence to enable financial professionals with actionable insights on topics like ESG, Patent Analytics, distinct alpa signals and many more.

Providing low latency quality information and investment signals, Infotrie’s API gives financial leaders new routes to investment strategies and alpha generation. As an alternative data and fintech specialist the company has data on over 50,000 stocks in global markets, covering the US, Europe, Asia, Australia, and even South America.

Based in the US, Caretta provides alternative data for clients who are looking to screen for crowded stocks, manage risks, and benchmark their investor performance against others. Their wide coverage of collected, and analyzed long/short ownership data is derived by using state-of-the-art technology.

By building a bridge between new technology and timely macro strategy Exante Data has enabled an extraction of price signals from detailed capital flow analysis. Offering more than 10,000 data series for more than 30 countries globally the company complements hard data and raw model outputs with timely, narrative-based content, focusing on key global thematics and risk scenarios.

With more than 19,000 news and social media sources RavenPack Analytics is one of the leading alternative data providers for alpha generation and risk management. With the company’s offering, hedge funds can gain access to analytics based on content across the last 20 years. All of their analytics are produced on entity basis and include scores for relevance, and sentiment.

Brain is a data research company providing alternative datasets through Natural Language Processing (NLP) and machine learning (ML) infrastructures. The company has used these technologies to create a sentiment indicator which measures the “mood” of about 8500 global stocks. Selling these proprietary signals makes BRAIN an interesting player in the Alternative Data ecosystem.

Suburbia provides alternative insights by gathering point-of-sale transactions from scalable sources across geographies. Founded in 2018 and headquartered in Netherlands, Suburbia partners with other companies in the payments ecosystem in order to capture evn cash payments - which are still a big portion of the general trade in many european economies like Germany.

With their web-scraped data from over 1 billion websites, Accern has enabled intelligent decision making for some of the most prestigious financial services firms in the world. The company’s solutions influence 100+ billion in AUM every single year. By scraping public news/blog websites Accern produces actionable financial information while maintaining strict policy in their data quality.