Alternative data has moved from discretionary research tool to quantitative input. Quant teams at hedge funds, asset managers, and family offices are building factors from search trends, sentiment series, social engagement data, and web behavior alongside the traditional price, volume, and fundamental datasets they have always used. This post covers how that works in practice.
Why behavioral data works as a quant signal
The premise behind using digital behavioral signals in systematic strategies is straightforward: consumer and investor behavior shows up in digital platforms before it shows u