Looking for accurate, comprehensive event data to stay on top of volatility? Wall Street Horizon has the unique tools and the research to support the importance of corporate events relative to volatility.
With the strong comeback of the biotech sector in 2017, now is as good a time as any to consider the corporate event data that can affect volatility. Although event data can range from FDA drug approval dates and FDA Advisory Committee meetings to investor conferences and analyst days, in this post, I’d like to focus on FDA drug approval dates.
In nearly every meeting I have with prospects, they ask the same question:
We all use non-verbal forms of communication with our posture, gestures and facial expressions. Sometimes it’s used consciously and purposefully, such as when a detective interrogates a suspect. But most often, it’s done subconsciously, like when a hiring manager is assessing a job candidate.
Conducted in August 2017, the survey polled over 100 institutional market participants, nearly two-thirds of whom were quantitative or discretionary fund managers.
For 14 years, Wall Street Horizon has focused on providing accurate corporate event data – because we know that corporate events impact volatility. For example, recent independent academic studies have demonstrated that changes in earnings announcement dates can affect alpha.
For the past couple weeks I’ve been writing on this blog and in our newsletter about FDA drug approval dates (PDUFA dates) and the impact that these catalysts can have on a drug manufacturer’s stock price. This week I thought I would let our partner Informa do most of the talking. And why not, considering their opinions successfully predicted 75% of the catalyst outcomes that occurred in Q4 2015!
Wall Street Horizon polled the investment community with a range of questions on corporate events. The results of the 2016 Corporate Event Research Survey reinforce that corporate events are critical to trading.
Previous research has shown that the attention constraints of human traders (investors and market makers) has lead to systemic effects on stock prices. The less attention there is on a stock, the less efficient that stock’s price will be to a negative earnings surprise, for example.
Over the last couple of years, we’ve seen many independent academic studies including one by Eric So, MIT and another by Joshua Livnat, NYU Stern and Li Zhang, Rutgers, that have concluded that alpha can be generated by trading on earnings date revision data from Wall Street Horizon.