2iQ is the world’s pre-eminent insider transaction data provider and our international partner community is one of the reasons why we lead our industry.
Recently, one such partner — causaLens — released a short paper on causal portfolio optimization, which is detailed here. Following that paper, the company has released another short report, this time detailing Causal AI solutions for data providers.
Market research reveals that when purchasing financial data, customers increasingly expect proof of value and curated signals, beyond just raw data. Value-added solutions are also expected to drive the overwhelming majority of new revenue for data providers.
However, standard data science pipelines and conventional analytics platforms fail to deliver unique and stable insights. These approaches overfit to spurious correlations in big, noisy financial datasets, and they crash under dataset shift.
causaLens leverages Causal AI to solve these challenges. Causal technology adapts far faster than conventional technology to changing circumstances, disruptive events and new economic regimes, due to its low reliance on spurious correlations.
causaLens’ platform is the only one on the market that discovers insights in low signal-to-noise ratio time-series data that is ubiquitous in finance. Automated pipelines harness cutting-edge causal discovery and inference algorithms to dramatically speed up signal discovery by a factor of ten.
An example of this in action can be seen with leading FX exchange CLS Group, which has reduced the time it takes to discover new products from 3-5 years to a few months. “The causaLens platform has enabled us to discover additional value in our data. Their Causal AI technology autonomously finds valuable signals in huge datasets and has helped us to understand relationships between our data and other datasets”, said Keith Tippell, Global Head of Product at CLS.
2iQ works with causaLens to go far beyond conventional machine learning to deliver causal solutions for customers. More on the results of our partnership can be found here.