Big Data Transforming Investment and Trading
Disruption of data and digitization is a new normal. Now, you don’t need to wait for months. The ups and downs in the value of your equity can accurately be predicted. It’s not a prank. Neither is it a joke. The pervasive use of data mining tools and techniques has made it possible.
Don’t you believe that the big data can really make the difference? You would start trusting upon this fact after reading this article. It’s all about ‘how’ big data is changing the investment and trading practice. Let’s walk down the points to experience its difference:
Data from the lens of analyst:
Visualize how a trader used to trade for a few years ago. A continuous drilling into the equities, shares and bonds data informed him to invest in a particular equity. But, it was like tossing for a head or a tail. Sometimes, he had to counter with an influx of complex data. Analyzing with it was truly a rough battle.
Today, the scenario is squarely different. You have a frictionless assistance of the big data. Moreover, you have easy techniques of data mining and processing. Walmat, an American multinational retail corporation that deals in a chain of hypermarkets, discount departmental stores and grocery stores, invested $2 billion in cash and $14 billion in shares to buy partial stake of Flipkart (an eCommerce giant in India).
It’s all a game of the data analysis. The Walmart relentlessly monitored its profitability via its data analysis. And finally, it figured out that it’s a cash cow. Thereby, it decided to buy its stake. Now, buying 77% stake in that eCommerce company is in the pipeline of the American retail tycoon.
Strategies hidden in big data:
Deriving sense out of large data sets is at the core of investment rules. The investment companies and traders can get straightway to the informed strategies. Resultantly, they would have more return on investments.
A case study on Backlinko states the miracle of appropriate suitable strategies for the Buffer. It registered 59% growth on its YouTube channel. And, it’s no hidden truth that the monetized videos earn a good enough return on its investment. The change in its online viewership is exponential.
If you look at the heart of its growth, you would find the real game changer is strategies. Brian Dean promoted its existing short videos on the right platform (that was YouTube), worked on the keyword research and did competitive analysis. Finally, it’s rolling out with exponential ROI.
Data-an ultimate financial advisor:
Wealth management firms have started discovering the magic of data and artificial intelligence. The more they have an access to the related data, the more accurately they would anticipate about the behavior of different global markets.
For example, the topnotch wealth management firms in India, IIFL and Kotak Wealth Management, decided to pitch for the accounts of Bansal and Flipkart. Yatin Shah, founder & executive director at IIFL, analyzed that more than 50 people would be benefited with the deal between the Flipkart and Walmart. And, they approximately made dollars between 800 million and 1 billion. Don’t these facts hide the traits of an expert financial advisor? (Surely, they hide).
Finding new ways of investment:
Being stuck in the typical trading can prove a horrible mistake. You might be thinking that traditional investments are reliable. It’s true that the firms that consistently make their presence in the leading Fortune 500 companies have proven track.
But, do you think it’s an affordable deal to buy their equity. You can do so if you have a fat sum to invest in. But, if you don’t have, think another way. Big data can show you that way. You can hire one of the best data research outsourcing companies. If you keep a bird’s eye, you can look into the publicly available equities data for small, medium and big firms. Track and even, put their data into the analytical funnel (using analysis tools). Eventually, you’ll have the key performers and their growth report. On that basis, you can determine which one can be your firm to invest in.
Predictive analysis can save your money:
It wasn’t possible to discover the laws of motion without any predictive analysis. Recall the US subprime mortgages in 2008 that led to collapse of the global credit market. Piling debt threatened the existence of the Euro in Greece in 2010. These financial crises could be eliminated while taping the risks. Today, it’s possible. We have Hadoop wherein voluminous data can be stored. Alongside, it can be assessed using its predictive algorithms. You would easily mirror the potential risks that can scroll down the growth curve.
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