The Importance of Timely and Accurate Corporate Event Data
Investment and Risk Strategy Use Cases
Abstract
Trading teams are extremely sensitive to the latency of data as corporate events can have a huge impact on the pricing of a particular instrument or set of instruments. For example, the delay to an earnings date may indicate a more negative company issue which can lead to an immediate and sharp downturn in the price of the stock. A variety of trading strategies can hinge on the timeliness of this information. Any potential sources of market volatility caused by corporate events need to be tracked and factored into trading strategies for maximum alpha generation potential.
Corporate event data is as varied as its uses, including contextual information provided via investor conferences, dividends information, or earnings dates. Any revisions to those dates or pieces of data can also provide signals to the market about potential earnings downgrades or improved financial performance. These data can be directly used to drive real-time hedging or trading activities, but the compilation of its history can also be used for simulations and quantitative backtesting.
For a sneak peak, the below 2-minute video addresses early signals of significant corporate events such as earnings date changes or mergers having a big impact on effective hedging and risk management.
Speakers:
Christine Short - VP of Research at Wall Street Horizon
Virginie O'Shea - Founder & CEO at Firebrand Research
