CloudQuant, a leading provider of alternative data, research, and technology has collaborated with Prosper Insights & Analytics to develop superior research insights, signal dashboards, and predictive analytics analyzing their Consumer Intent Survey Data. These new analytic tools created by CloudQuant deliver investors with highly novel and profitable investment strategies by utilizing Prosper’s monthly survey of US consumers.
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In one of the hottest areas in alternative data, Prosper’s monthly U.S. and quarterly Chinese Consumer Survey Data provides future consumer purchasing intent, current economic outlook, and brand preferences. Unlike payment transaction data and digital footprint data, which is by definition backward-looking, the most innovative investors are now looking at survey data that covers consumers’ stated purchase intentions for use in forecasting behavior over the next few weeks or months. CloudQuant develops investment strategies using novel alternative datasets. They were able to develop a highly novel and profitable investment strategy utilizing the Prosper U.S. Survey data.
Some key findings from our study of the Prosper data:
CloudQuant measured the investment performance to be an annualized return of 30.62% with a Sharpe Ratio of 3.1. CloudQuant researchers employed Prosper survey data to create high-capacity investment strategies based on identifying over and under-performing market sub-industries to construct an investable portfolio. The results of the strategy were measured using CloudQuant’s CQ AI institutional-grade data science and backtesting platform.
As a measure of how novel Prosper’s data is, over 60% of the performance is statistically unique. This means that our results cannot be achieved/replicated by investing in another strategy.
Prosper signals show reliable long predictions in retail-related subindustries and consumer-related subindustries, such as food retail, home furnishing retail, and more. Since 2001, Prosper’s monthly consumer survey is one of the largest monthly consumer surveys available. The survey has also been used by the NRF since 2003 to trend and track consumer spending for all retail holidays throughout the year.
CloudQuant CEO Morgan Slade said: “The novelty and forecasting power of Prosper’s U.S. and Chinese Consumer Survey Data are clear in the investment results we achieved. Serious investment managers should be leveraging consumer survey data to enhance their returns. These represent the first of many new investment signals we plan to develop based on this unique, forward-looking dataset.”
Phil Rist, EVP – Strategic Initiatives at Prosper Insights & Analytics commented: “The alternative data market has been focused on a linear thinking model based upon transactional data which is backward-looking. Due to the exponential changes from COVID this data failed to perform and adapt. CloudQuant’s application of AI/ML to Prosper’s forward-looking consumer data overcomes this deficiency and provides unique analytics to achieve alpha.”
Fundamental consumer discretionary, information technology, healthcare, communication services, and financial sector investors can analyze Prosper data in a custom CloudQuant signals dashboard.
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