Datayes CEO Dr. Jim Wang recently joined Reuters Global Investment Summit to share his view on how quantamental investment and alternative data revolutionizes investment management.

In investment management, traditional fundamental investment is performed by human domain experts logically analyzing small data, and the decision making process is often obscure and lacks objectivity. On the other hand, quantitative investment leverages machines to analyze big data and is heavily reliant on statistics and probability theory.

Dr. Wang believes that the future trend is an integration of the above two methods, combining the strength of both human and machine.

He shared his experience on building quantamental investment platform, and that it is based on the integration of 2 approaches. One is symbolism: expressing human domain expertise with knowledge graph. The other is connectionism: using statistics and machine learning to learn from big data, detect patterns and perform forecast. The core of this integration is the construction of knowledge graph, including the availability and quality of underlying data, accumulation of knowledge and analysis logic, and constructing a man-machine integrated research framework.

With the research framework, investors can quantify macro, industry, and single stock fundamental factors by loading corresponding data into the framework and applying Artificial Intelligence analysis to process data and forecast revenue.

Datayes’ revenue forecast result shows that AI forecast outperforms analyst consensus. Using signal analysis, Datayes’ AI revenue forecast achieved information coefficient of 1.65 and information ratio of 1.93, versus 0.79 and 0.87, respectively, from analyst consensus.

Datayes! intelligent investment platform is currently servicing various financial institutions. The platform leverages rich fundamental and alternative data to construct intelligent quantamental investment platform, and provides features such as revenue forecast and smart monitoring to help financial institutions upgrade their investment management system.