- Using Artificial Intelligence (AI), Amundi – partnering with Causality Link and Toulouse School of Economics – is building aggregate news signals to capture the tone and popularity of company news.
- These news signals can predict share price movements in the near term for different sized companies and news types.
- This may be a promising area of development in asset management: Investors can use these news signals to build strategies that aim to achieve excess gross returns.
Using a proprietary algorithm, the Amundi Institute in partnership with the AI platform Causality Link and the Toulouse School of Economics, extracts content from the textual data available across the financial markets. By searching articles, call transcripts and broker research, the AI platform identifies a company’s name, its Key Performance Indicators (KPIs), any directional change in these KPIs and the tense (past, present or future) of news statements.
You can now read the full whitepaper at the link below