Data Trends for Investment Professionals

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The Landscape of Auto Industry Data

auto industry infographic

Since man first invented the wheel, our need to optimize the way we get around has been an almost primeval obsession. From the advent of the first motorized vehicle to self-driving cars, the auto industry has evolved quickly in its embrace of technology. We are now experiencing what is probably the greatest advancement in the automotive sector since Henry Ford first designed his moving assembly line: the rise of the connected car.

Per Scotiabank’s BI Intelligence Estimates, by 2020 more than 75% of new cars shipped will be Internet-connected. From reading your Facebook notifications to measuring safety and engine health, your car is about to become smarter than Michael Knight’s four-wheeled crime fighter, KITT. Not only is the vehicle being designed to get you from A to B with virtually no driver input, the car of the future will also be outfitted with telematics to drive a deeper kind of data analysis. Conceivably, your minivan could provide data that can help investors make better trading decisions.

While Wall Street predominantly trades in equities, commodities, currency and bonds, the singular asset that is most valuable to them is data. To the hedge fund trader, the connected car is a source of endless possibilities: fuel consumption drives oil prices, location tracking drives retail performance, road construction signals city health. Traders can augment their investment strategies with this new information, analyzing the micro and macro trends, and taking positions in the hopes of achieving returns that exceed average market performance. We call this generating alpha. And its possibilities are boundless so long as the data keeps coming.

According to a recent Research and Markets report, the connected car market is expected to see a compound annual growth rate of 35.54%, between now and 2020. This, in turn, would have an underlying effect on commodities, where the global aluminum market is expected to see compound annual growth of 4.5% during the same period. Finally, aftermarket products and services are expecting 67% growth from new vehicle sales between 2015 and 2030, as per McKinsey.

If you think you have telematics, infotainment or any other kind of connected-car data that could be of value to the financial industry, we want to hear from you. We’ve worked with hundreds of companies to successfully create new revenue streams by offering their data through the Quandl platform. We offer full-service vetting, productizing and onboarding of your data, as well as sales and marketing expertise to the investment community.

Every Quandl vendor undergoes a strict QA process that involves data cleaning, hypothesis testing, trading simulation, index creation and marketing. None of the data hosted on Quandl contains personally identifiable information, not simply because Wall Street traders are more interested in the aggregate than they are in individual data points, but because we pride ourselves on upholding data governance and security best practices. Should you even prefer that the source of the data product remain entirely anonymous – as many of our vendors do – we will commit to developing a non-identifying asset.

Once the data is cleaned and tested to our standards, we offer it to our Wall Street clients – based on their investment focus – in a way that preserves its signal and avoids the diffusion of alpha. Data is then delivered through our API in the format traders want. It’s seamless, straightforward and more importantly secure, leaving you to get on with more pertinent matters to your business.

Let us be your navigational aid on the journey to a new revenue stream. Find out more on how you can productize your data today.

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