Nonfinancial data

As explained in Investing for Programmers

Nonfinancial data is quantifiable information about an entity or its environment that is not part of its financial accounts.

Nonfinancial data is quantifiable information outside financial accounts. In investment research, it offers a newer source of potentially underexplored signals for trading decisions. section 11.1 section 1.3.1

Treat it as another data stream: collect and aggregate observations, incorporate them into models, and assess whether they add useful information beyond established financial analysis. section 11.1 section 1.3.1

Figure 11.1 Three types of data flow can lead to insights, and nonfinancial data, being the newest of them, is especially interesting.

The figure maps three data flows and highlights nonfinancial data as the newest potential source of trading insights. section 11.1

How Investing for Programmers covers it

How deep it goes

Connects nonfinancial data to models and algorithms but does not enumerate specific sources or provide implementation details.

Examples

Points to a three-source data-flow figure and contrasts nonfinancial data with financial data used in investment research.

What it assumes

Assumes basic investment research and quantitative data concepts while distinguishing nonfinancial data from standardized financial data.

What you can do after

Evaluate whether quantifiable nonfinancial signals can complement financial data in research and trading models.

How it connects

Ties nonfinancial data to quantitative research, data collection, machine learning, and trading decisions.

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Related concepts

• social media dataincludes · Social media data consists of content and activity records generated by users on social media services.
• machine learninguses · Machine learning is a field of computational methods in which systems learn patterns or relationships from data to make predictions, decisions, or other outputs.
• structured trend analysisused by · Structured trend analysis is a systematic technique for extracting investable insights by measuring developments over time.
• financial datacontrasts with · Financial data is information about financial entities, accounts, transactions, markets, monetary amounts, or economic activity.
• nonfinancial riskuses · Nonfinancial risk is the possibility of adverse outcomes arising from operational, regulatory, environmental, political, technological, reputational, or management factors rather than financial metrics.

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.