Case Study

Array Analytics Relies on DataSift to Share the “Wealth of Information” with Brokerage Customers

Array Analytics Case Study
About Array Analytics

Array Analytics provides the industry’s most advanced social network platform for commercial transactions; one that provides fully-facilitated participant collaboration. Based on a patented platform, the company provides investors with straightforward, objective analysis of both past and potential trading activity.

Challenge

Capitalize on social data to perform objective analysis of both past and potential trading activity in support of commercial transactions.

Website

http://www.array-analytics.com/

Sector

Financial Services

“We couldn’t survive without DataSift, it’s as simple as that. DataSift drives all of our social investment research.”

Frank Lortscher

President and CEO, Array Analytics

Patented “Wisdom of Crowds” platform uses signals for social data sources to monetize investment data and increase investment returns.

THE CHALLENGE: SOCIAL INVESTMENT TRADING HAS ARRIVED

  • The investment community is being turned upside down by social media. Investors are increasingly sharing the fact they trade in unstructured data. Indeed, the concept of social trading, networked investing and community researching represents a cultural and economic trend—and it’s all driven by technology.
  • Array Analytics has been an early protagonist of this trend, and believes that platforms which effectively employ the “wisdom of crowds” can level the playing field for the individual investor. In other words, using social data to perform objective analysis of both past and potential trading activity in support of commercial transactions.
  • Until now though, this social opportunity has been grounded by an early phase of brokerage tools that are difficult to use and that yield poor returns. Successfully picking which members to trust or which traders to follow isn’t much easier than choosing which stock to buy. And without some help navigating through all those people, the crowd doesn’t seem all that wise.

MONETIZING SOCIAL INVESTMENT DATA

  • Array Analytics’s patented “wisdom of crowds” platform—a “smart collaboration” engine—filters, matches and aggregates profile and transaction social data.
  • It is used by peer-to-peer lender, retail broker, paper-trading sites and other investors to deliver clear, concise and compelling information, monetize transaction data and underpin both investment activity and returns.
  • DataSift is the heartbeat of this “wisdom of crowds” system, collecting any type of unstruc- tured data through a single API and enable investors to trade based on social signals. Array Analytics uses this best-in-class solution to aggregate, process and deliver social content (currently Twitter, although other sources including WordPress will be added soon).
  • DataSift augments the rudimentary filtering performed by StockTwits and Twitter. DataSift searches hundreds of unique fields, including location, language and demographics across dozens of social platforms. It also increases filtering flexibility by applying a single filter across multiple data sources—for example filtering out very small stocks. And the solution provides access to billions of historical social posts to provide Array Analytics and its customers with historical perspective on investment trends.

ARRAY ANALYTICS FUNDS OUTPERFORM THE MARKET

  • DataSift is the cornerstone of Array Analytics’s go-to-market strategy, helping investors become more profitable and helping brokers have more profitable customers. Indeed, President and CEO Frank Lortscher believes that, “without DataSift half of the business would not exist.” He also estimates that by automating the signal process, DataSift saves the equivalent of one full-time employee.
  • The Array Analytics platform—based on DataSift—has been so successful that the company this year partnered with an investment management company to launch two funds based on social sentiment derived from data streams like StockTwits and Twitter. Recommendations and reporting performance are shared on the StockTwits stream. The fund is in up to 30 equities at any time, mainly in longs and a few shorts.
  • These funds currently have so far outperformed the market. While the market is down approximately 4% (at the time of writing), the Array Analytics fund is up 2.5%.
  • DataSift Query Builder is a popular feature, allowing the Array Analytics team to interrogate data by designing queries visually. The result is increased control and transparency. For example, Array Analytics uses the $CASHTAG clickable stock symbol. $WAG is the $CASHTAG for Walgreens Company, and DataSift enables Array Analytics to re-run queries and sampling to sift through the irrelevant noise relating to $WAG and identify relevant investment data relating to Walgreens.

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