We can all probably agree that our ever-connected global marketplace is becoming increasingly more difficult to monitor. Take incoming volatility risks for example. There are simply too many sources dispensing information to plug into and monitor all of them. The best we can do is plug into a few of them and hope the information we get is the information we need.
But what if there was another way? A more reliable way. And what if we told you the other way was found within the NewsHedge detection algorithms?
Well, that is what we’re telling you. So let’s walk through this illustration so we can show you, too.
For our example, let’s take intraday risks (also called incoming volatility risks) and break them up into two categories—headline risk and market risk. Here’s how we’ll define them.
Headline Risk (fundamental)
Headline risk is associated with any type of market-moving information being disseminated publicly through any available media channel. This could include things like analyst rating changes, oil supply numbers, unemployment releases, resignations, bombings, and rumors.
Market Risk (technical)
Market risk falls within the technical analysis category because market risk is purely related to the market mechanics of trading. Catalysts that can move an asset or move entire markets could be things like short squeezes, unusual volume, support/resistance breakouts, cascading stop orders, liquidity fluctuations, and exchange issues.
Using these definitions of headline risk and market risk, just stop and think for a minute about how many things are going on at one time every day. Maybe someone resigns and then a product is recalled. Perhaps there’s a mini-flash crash. Maybe trading curbs intervene or trading is halted all together. There’s no way someone could ever be expected to tune into and filter every single thing that’s happening. There’s hundreds of newswires. Thousands of websites. A sickening amount of social feeds. And then you’ve got television channels, too. Can’t forget to watch those. And don’t forget that you need to monitor all the possible risk scenarios happening within our lovely (and super, ridiculously hyper-active) electronic markets themselves.
But the problem is that no one can do that. No one and nothing can track that much information. And we’re not going to tell you that NewsHedge can do it either, because it can’t. But it can do something else that’s just as valuable.
NewsHedge detects unusual (or notable) trading behavior.
Whether it’s headline risk or market risk affecting an asset, we know for certain that one or all of the following will occur:
- A single asset will move in price.
- A single asset will move in price and that will create a ripple effect elsewhere.
- The entire market will move.
Since we know one of those things will happen, we also know that giving you that information as soon as it happens—within seconds of it happening—will allow you to make decisions that can ultimately make or save you a ton of money.
NewsHedge is closely watching 6,000+ assets for unusual trading behavior and then we’re telling you, verbally, using text-to-speech technology that runs in your browser, at the earliest possible moment.
We’re finding over 40% of reported events have a catalyst of some sort behind it. NewsHedge allows you to stay tuned into what matters, as it’s happening. Hands down, it’s the fastest media broadcasting solution available.
To gain early access and find out if NewsHedge can help fulfill your market narratives, please submit your email address on our home page www.newshedge.com or contact firstname.lastname@example.org.