Research That Moves Markets

Our quant research papers quantify how news sentiment drives equity returns and how to extract that signal with precision.

Not All News Is Signal

Of 241,000+ sources, only 15% carry statistically significant predictive power for equity returns. Filtering to the quality panel increases mean IC from 0.006 to 0.041 with no loss in coverage.
• +0.035 IC boost‍Quality sources vs unfiltered
baseline
• Adaptive signal decay
Each source peaks across distinct forecast horizons
• Regime-aware selection
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Source relevance shifts across market environments

How Sentiment Signals Inflation

Our latest study shows that news-based sentiment provides statistically significant predictive power for U.S. CPI-U.

Adding sentiment to standard autoregressive baselines improves explanatory power and reduces forecast errors, consistent with an expectations-to-prices mechanism.
• +0.15 R² boost
‍Improves accuracy vs baseline
• Expectations channel
News tone captures pricing and demand expectations
• Regime-dependent effects
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Predictive strength varies across inflation cycles
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