What Are The Benefits Of Facial Recognition Technology? Facial Recognition Helps Define Investments
Use of alternative data grows in the financial market
Uptrends and downtrends are commonplace in the financial market. Volatility is related to risk, a weight that influences the profitability of the investment. It is necessary to understand that if, on the one hand, it provides a greater possibility of gains, on the other hand, it also tends to increase the risk.
A great ally for investors and investment managers to understand this ups and downs has always been data analysis. André Meirelles, Director of Allocation and Distribution at InvestSmart, XP’s fifth largest office in Brazil, says that “we use data in every way and all the time. Data transformed into information provides conviction for a big decision. The more information, the more chance the decision will be assertive.”
There are several financial indicators, metrics that collect and generate information. Which will be analyzed before any decision is made. Furthermore, they can become categorized by profitability, indebtedness or liquidity. Using the right data makes all the difference when choosing the best investment.
But today, investors and managers are increasingly using unconventional data, called alternative. The director of InvestSmart says that, currently, even images are part of the managers’ analysis.
“We use image recognition to identify the features of personalities in the financial world, such as the president of a central bank, to define how this can be related to the rise or fall of the stock market.”
According to a survey by Research and Markets, one of the largest research houses in the world. Moreover, the global Alternative Data market is expected to reach the $11.1 billion mark by 2026.
Paulino Oliveira, CEO of Belo Investment Research, a research house with expertise in the collection and analysis of alternative data, explains that “we have always used sources of balance sheets of companies and the like. However, nowadays there is a volume of diverse sources that wasn’t traditionally used on a large scale in the financial market. Today we have data on the flow of people, conversion and engagement in social networks, mobility, satellites, which can bring an advantage to investors as they anticipate market trends”. Lastly, this demonstrates that the investor who uses this type of data has a more contemporary view and bets on new technologies as a strategy to succeed.
André Meirelles, Director of Allocation and Distribution at InvestSmart, was the guest of Belo Ao Vivo, an Instagram lives program by Belo Investment Research (@beloinvestmentresearch), which aims to discuss current topics in an uncomplicated way, every Wednesday, at 6:30 pm.
Written by Belo Investment Research
Belo Investment Research is an independent research company that combines traditional and alternative data to analyze market trends since 2016.
What Are The Benefits Of Facial Recognition Technology? Facial Recognition Helps Define Investments
