Press Releases

Solactive drives innovative index development with cutting-edge Emotional Data Intelligence Index, serving as the underlying for UBS Index Certificate

Solactive is pleased to announce the development of yet another innovative index utilizing alternative data sources. The next index deployed by the German Index Provider is labeled Solactive Europe Big Data Sentiment Index and features a unique approach of using emotional data. The proprietary algorithm mines user-generated information from Social Media platforms, delivering the primary dataset of this particular index.

Social Media data is a valuable source of information. A study from British Stanford University found that, after analyzing users’ behavior on Social Media platforms, computers are superior to the users’ close family & friends in judging character traits. To harvest information on financial data, Solactive teamed up with Stockpulse GmbH (StockPulse), which is a pioneer in emotional data intelligence, specialized in the data mining of publicly available online sources predominantly concerned with discussions about financial markets.

The index operates as the underlying for an Open-End Index Certificate by Swiss banking leviathan UBS, enabling sophisticated investors to participate in European stocks that exhibit a strongly positive score on overall communication in Social Media and newspapers.

“We have dedicated ourselves to find advanced and disruptive ways to detect superior performance potential, which is cloaked deeply in the sheer endless maze of information that online users generate every day”, says Timo Pfeiffer, Head of Research at Solactive. He continues: “We make use of existing algorithms, which parse data and extract an essence that allows us to develop innovative index concepts with an added value. It is a genuinely exciting approach.”

Stefan Nann, CEO of StockPulse comments: “We are pleased to have found a strong partner in Solactive, which consolidates our valuable sentiment data into consistent indices, making our data indirectly accessible to a broad mass of investors”. He adds: “Scientific studies and numerous practical applications that we have developed for our clients such as hedge funds, financial service providers or publishers have impressively shown that the complex analysis of emotional data delivers clear alpha for investors”.

The UBS Open End Index Certificate on the Solactive Europe Big Data Sentiment Index is listed at Börse Frankfurt and Börse Stuttgart.