There are two components to DIY quantitative investing. The first is know-how in building models and systems. The second is data to fuel the analysis, model or strategy.
It is this second component that often impedes otherwise capable analysts because finding valid, usable, well formatted data is either time consuming or expensive. We can't all afford Bloombergs @$20k a pop.
The democratization of quant demands as a prerequisite, the democratization of data. This is the mission that www.quandl.com is on. Quandl is part data platform, part search engine. It is a search engine in that it uses bots to find numerical data from all over the internet. It is a platform because it parses and organizes the data it discovers thus making it easy for Quandl users to find and use numerical data.
By bringing all numerical data into one place and building a smart index and interface Quandl opens up quantitative information to everyone. Quandl currently offers 4 million financial and economic time series for free. This includes FX rates, futures, commodities, interest rates, stock prices, indexes as well as business and economic indicators. A large fraction of the data an analyst needs to build models like the ones Gray and Carlisle discuss can be easily downloaded from Quandl.
Quandl has thousands of users already, but is still in its nascence. TKA readers should check it out if they have a few minutes.
If you liked this post, don't forget to subscribe to Alpha Architect
Alpha Architect believes in a systematic, evidence-based, and fully transparent approach to asset-management. Please contact us to learn more
The information contained herein is only as current as of the date indicated, and may be superseded by subsequent market events or for other reasons. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Alpha Architect, its affiliates or its employees.
This information is not intended to, and does not relate specifically to any investment strategy or product that Alpha Architect offers. It is being provided merely to provide a framework to assist in the implementation of an investor’s own analysis and an investor’s own view on the topic discussed herein. Past performance is not a guarantee of future results.