Big Data stocks: it looks beautiful.

South Fund + SINA, GF Fund + Baidu, in just a few days, there are two financial institutions together with the Internet giant launched a "Big data" investment index. Large data is already a hot concept, and now large data can not only enhance the efficiency of enterprises, and even directly from the financial market to earn real money, this is not exciting market.

From a handful of Chinese and foreign market research, the use of large data to explore popular stocks to invest, it is feasible, or at least look very beautiful.

Looking at data investment is not new

Big data is now a hot word, but in the investment community, the use of large data investment is not new, but has a long history, many times, not even a commendatory.

Before the word "Big Data" became popular, the technology was applied to the investment community, but it was called data Mining (mining). As the representative of this big data craze, Amazon's helm, Bezos, had been in the 劭颖 group, the hedge fund, and the latter was a model of quantitative investment using big data.

When Wall Street recruited rocket scientists and physicists who were good at mathematics to analyze financial markets, a huge pile of data was analyzed by computer to find relationships between seemingly unrelated data.

Wall Street used big data to make a lot of money, and, of course, then lost a lot of money. The field is represented by a long term Capital management company, founded by two Nobel Prize winners, who suffered from "extraordinary events" such as the Asian financial crisis, the Russian bond crisis, and the LTCM, which was forced by the Federal Reserve to take over 4.3 billion dollars a year, based on the arbitrage model of large data statistics.

Because there are too many negative cases, the use of large data for data mining, on Wall Street just like the company's fundamental analysts as a way of investment, is not seen as "point of gold."

Search to find clues behind

If you say for a long time, Wall Street to play the big data stocks are based on large data, then accompanied by the Internet, especially the rise of search engines, so that investors have a more play to the idea of large data-search engines and news and other external data for large data analysis, find investors may favor the company, ahead of the latent.

For now, the most famous achievement is the research team led by Tobbias Praisse of Business School at the University of Warwick in the UK. From 2004 to 2011, they used Google's Keyword search thermal research tool, "Google Trends" to conduct a detailed analysis, found that if the public use search engines to search for a keyword, often represent their anxiety, this time selling is a better choice. On the contrary, if netizens stop searching for relevant words, it may mean that anxiety alleviation is a good time to hold a job.

Throughout the study, they found that the hot keyword "debt" was the most volatile search. During the 7-year research period, the cumulative gain was as high as 326%, using the reverse operation of search heat.

From the trading concept, the recent GF-Baidu launched Baidu Hundred 100 Index also uses a similar strategy, by tracking specific keywords in Baidu search engine absolute search volume and relative search volume changes to decide whether to hold related stocks.

The machine sees the news to be very profitable

Investment to see the news, the news often contains hot spots, this is a lot of old investors to the new investors warning. Of course, the same word, to the Big Data era has a different connotation. Now, the use of large data to analyze thousands of news, has become a new way to explore excess income.

GF Securities recently released a research report, by digging Baidu News of the Shanghai and Shenzhen 300 index of the number of shares of news, once a listed company's news suddenly increased as a positive, vice versa. GF Securities Use 2011 to 3721.html ">2014 year May 2 historical data back to the survey found that by monitoring the number of news, can achieve 37.03% of the annual income, while the Shanghai and Shenzhen 300 index fell 16.24%, visible large data" see "News, the income is very strong.

The Changjiang securities have also conducted similar studies, of course they read the news more deeply, by analyzing the keywords, dividing the news into negative news and positive news, and then studying the changes in the news, and buying the stocks that have a big increase in positive news.

Recently, the South Fund and Sina plan to put together the "big financial Data Strategy index", one of the important data is financial news report exposure.