While it is possible to extract alpha from media articles, researchers from MKT MediaStats have found that there are strong benefits from adjusting for inherent and consistent biases when building predictive models of future stock returns.
Research from MKT MediaStats has found that by analyzing the intensity, sentiment, and disagreement between media articles, it is possible to improve the predictive power of media analysis and improve the expected return predictions significantly. The process of bias adjustment and incorporating a more sophisticated analysis of media coverage has shown to improve the information ratio and annualize returns of portfolios.
In this webcast, FactSet and State Street are joined by Ronnie Sadka and Gideon Ozik, co-founders of MKT MediaStats, to discuss how adjusting for the human bias in media enhances stock portfolio returns.
Download the webcast to learn more.