SentiTrade® – Sentiment Analysis for financial market players incl. loss mitigation signals

Overview of sentiment development

The product SentiTrade® powered by our partner YUKKA Lab automatically detects whether the news sentiment in the financial markets is positive, negative or neutral. In addition, the tone of the content from the leading German ntews agencies is analysed in real time and expressed as a continuous sentiment and early indicator. The high quality of the analysis and the reproducibility represents a clear differentiation from the methods employed up until now of weekly surveys or social media analysis.

Signals on loss mitigation

Alongside the overview on sentiment development, SentiTrade makes clear loss mitigation signals available. BUY and EXIT signals for selected countries, regions and industries based on shifts in trends of the respective financial market sentiment. Compared over the long-term to “BUY & HOLD”, significantly less volatility can be achieved with equal or better performance.

Further information...

SentiTrade serves as a building block for banks, pension funds, family offices or asset managers for strategic and tactical (multi-variant) asset allocation. Sentiment analysis by YUKKA Lab ensures a more solid basis for technical and fundamental analysis of the financial markets.

By using SentiTrade in the areas of asset management and wealth management on the institutional side, as well as in the individual asset management on the private side, significant improvements can be achieved in respect of the risk-return ratio.

Based on SentiTrade, there is also the possibility of offering those interested parties trade or trend signals. Furthermore, together with our partner finatris, we also develop customised trade systems for our clients, on request.

The accuracy of the sentiment analysis when interpreting economic and financial news is over 80% in comparison to actual market development.

Advantages of SentiTrade®

  • Loss mitigation signals based on SentiTrade®

    BUY and EXIT signals for selected countries, regions and industries based on the shift in trend of the respective financial market sentiment

  • Close cooperation with the news agencies dpa-AFX and AWP

    Reproducibility of results in contrast to weekly surveys and social media

  • Long-term analysis stretching back to 2005

    Comparisons made with i.a. DAX, SMI, Ifo Business Climate Index, KOF Economic Barometer or various sector indices

  • Technology and three-year proof of concept

    Self-developed, context-specific algorithms and establishing through proof of concept with i.a. Consorsbank, vwd Group (finanztreff.de), Basel University and d-fine

Application areas for SentiTrade®

  • Support for own research

    SentiTrade® as a key pillar alongside fundamental and technical analysis

  • Investment advice - reduces advisor liability with clients

    Documentable second opinion, neutral risk process, traceable decisions

  • Condition of products based on SentiTrade®

    Funds, certificates, ETFs, hedge funds (long only or long/short)

  • SentiTrade® as a marketing tool

    Provides interesting news for clients (widgets, newsletter)

SentiTrade® is available as:

  • Sentiment quotient via API interface for your own modelling
  • E-mail with loss mitigation signals
  • Web-based Cockpit with signal monitoring, portfolio optimisation, overview on sentiment development and the news

Overview of sentiment development

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Rated news ticker

News can be filtered with sentiment indicators – e.g. focus on Germany or Switzerland or industries (e.g. banking, automotive, health care, food & beverage)

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Sentiment development chart

Choose to compare sentiment indicators with, for example, DAX, S&P 500, SPI, Ifo Business Climate Index, KOF Economic Barometer.

Select news structure of the sentiment indicators (including dpa-AFX, awp, various industries).

Flexible presentation of prices as well as two rolling averages (38 Simple Moving Average, 200 SMA).

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Most common keywords

List of words that were detected most often as being different in terms of being either positive or negative (relative display).

With SentiTrade® financial market players are able to get the information they need and carry out their own investments. They can use it to get important information about economic financial market sentiment:

•    diverse range of sentiment indicators
•    rated news tickers
•    most common keywords
•    as well as charting the respective sentiments.

The basis for these visualisations (see image below) is the daily calculated sentiment quotient, which is formed from the ratio of positively rated news to the total number of polar (positive + negative) news.

Signals on loss mitigation

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BUY and SELL signals

Signal display for quick decision-making in respect to maintaining an investment or reducing or increasing the position.

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Markets at a Glance

Display of all available markets with your sentiment-based signals, organised by country, region and industry

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Performance comparison with/without sentiment

Presentation of the performance comparison with and without sentiment for a selected market

BUY and EXIT Signals

Together with our partner YUKKA Lab, sentiment-based signals for selected countries, regions and industries are available in our Trend Cockpit PrognosD under the tab “Sentiment Signals”. You can see all available markets at a glance with their sentiment-based signals, which are generated approx 2-6 times per year and market. The BUY and EXIT signals are produced based on the shift in trend of the respective financial market sentiment and are available for DAX, SMI, ESTX and various Stoxx 600 sector indices.

Compared over the long-term to “BUY & HOLD”, significantly less volatility can be achieved with equal or better performance.

The accuracy rate of the sentiment signals in relation to the actual market development is over 70%.

Signal Calculation

  1.  On the basis of the dpa-AFX and awp data analysis, individual sentiments are produced (according to country, industry, region).
  2.  To determine shifts in trends for the SentiTrade indicators, we use a simple system of two rolling averages (GD1: 60 days, GD2: 140 days plus buffer zone ± 1%).

Free test now!

Get in touch with us today and test our sentiment indicator SentiTrade for your financial activities for 15 days free of charge.

Examples for SentiTrade-Widgets

Using SentiTrade widgets, you are able to present the financial market sentiment in real time for internal purposes or on your website – easy to understand, clear and can be customised to your own (design) ideas. Curious? Then get in touch with us.

Individual solutions

Our technology to detect sentiment can be used in the most diverse industries and applications. This includes, for example, credit and business information.

We are also happy to help you with customised solutions. Get in touch with us directly to find out more.

Are you interested?

Please let us know your requirements and what you would like to analyse. We would be very happy to advise you. As our online shop is currently under construction, prices are given on request.

Please use the contact form or give us a call.

We look forward to hearing from you!