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StockSnips Inc. Announces collaboration with Associated Press (AP)

StockSnips Inc. Announces collaboration with Associated Press (AP)

Growing adoption to date with 20,000 individual investor sign ups and 5 institutional customers
Pittsburgh, PA November 14, 2018: StockSnips Inc. today announced that it will work with AP to market StockSnips products jointly to AP and StockSnips customers.

Using advanced AI and machine learning algorithms, StockSnips continuously reads news articles and extracts relevant facts and derives a sentiment score. This enables financial firms to view the market with an alternative lens: News sentiment, in addition to price and volume.

The sentiment is a predictor of market and individual stock trends and a valuable aid to making investment decisions. The alternative data feeds will be available to companies via APIs like:

  • Hedge Funds
  • Online Brokerages
  • Banks
  • Financial Content Providers
  • Media Companies

StockSnips Personal, a mobile app, is available on the Apple App Store and Google Play Store.

“We have trained our advanced Natural Language Processing algorithms to identify relevant snippets from articles, classify them by topic, and attribute the snippet to the right company. This has enabled us to transform news to a quantified alternative signal that can be combined with other factors to generate Alpha,” explains Ravi Koka, Founder and CEO of StockSnips Inc.

“We are excited to team with StockSnips in bringing AI solutions to customers. We believe that there are several use cases where this technology could impact customer experience and engagement. StockSnips uses AP licensed content for its application, and the rich financial taxonomy that the solution uses in classifying and tagging news enables StockSnips to extract news sentiment,” said Fernando Ferre, VP of Business Development at AP.

Under this collaboration, Stocksnips will be offered to AP customers as part of AP’s Emerging Solutions program.

News Sentiment is a robust indicator of market trends and price behavior

Sentiment signals from news articles are “less noisy” than social media sentiment signals, and more likely to be correlated to stock price performance. Our research has shown a strong correlation between news sentiment change and price change in a study that covered 2000 US equities over a two-year period.

The news sentiment index alerts investors regarding change in sentiment and impact of events like earnings releases, oil price and interest rate changes. StockSnips machine learning models are doing the homework for you and have been trained to achieve high accuracy.

Our current corpus has 10 million articles from over 20 reliable sources and covers 3500 US equities. Currently, 20,000 individual investors have signed up for our mobile service.

Major funds validate Alpha value of signal

News based sentiment intrinsically covers a significant number of factors that affect stock price and represents an alternative data signal that can be an early indicator as to how stock prices will be impacted. Several studies have shown that news stories, especially around the company’s earnings announcement, influence stock price.

Research results have confirmed that linguistic media content captures otherwise hard-to-quantify aspects of firms’ fundamentals, which investors quickly incorporate into stock prices. Our analysis has shown that there is strong correlation between sentiment change and price change.

A major quantitative hedge fund recently ran their back tests and found the results provided potential Alpha and have licensed our company sentiment data on a real time basis to integrate with their trading models.

Viv Penninti, CEO of InRhythm and Co-Founder of StockSnips commented, “In a study to determine reliability and construct validity of our signal – taking into account the complexity related to the discrete and bounded nature of news sentiment – we were pleased to find that there is a high signal to noise ratio with strong construct validity. Our analysis also indicates a much higher correlation to price movement versus pure social media driven sentiment signals.”

About StockSnips Inc.

StockSnips(www.stocksnips.net) is a Pittsburgh based company founded by computer and data scientists. Our vision is to provide easy access to stock market news sentiment analysis to investors. Understanding market sentiment trends can provide an edge and our aim is to provide high quality alternative data that can be easily integrated with traditional data sources. Our current products are an outcome of research conducted by data scientists working with active investors and investment experts.

About AP:

The Associated Press (www.ap.org) is the essential global news network, delivering fast, unbiased news from every corner of the world to all media platforms and formats. Founded in 1846, AP today is the most trusted source of independent news and information. On any given day, more than half the world’s population sees news from AP.

Contact:

Stocksnips Inc.
Media: Kathleen Conlogue
Email: info@stocksnips.net
Twitter: @stocksnips
Facebook: https://www.facebook.com/stocksnips

AP:
Lauren Easton
Director of Media Relations
The Associated Press
212-621-7005
leaston@ap.org