Have you heard of alternative data? Our Quiver Quantitative review looks at this company that offers the alt data and how to use it to the fullest in your trading. It’s a free tool so when it comes to those trading tools, free is always a good price. We’re going to look at what they offer as well as how to use it in our Quiver Quant review.
What Is Quiver Quantitative?
Quiver Quantitative or quiverquant.com is a free to use alternative data platform that’s aiming to level the playing field for retail investors who traditionally don’t have access to the data that institutional investors have. It was created in February of 2020 by two recent graduates from the University of Wisconsin.
To this day it remains a free to use site without any sort of premium subscription cost. But you can probably expect that to eventually come. Right now, the founders have said they’re working hard to continuously add more data to the site, and eventually will be launching a mobile app for users. That’s great news for this Quiver Quantitative review.
What is Quant Investing?
You may’ve seen the phrase thrown around FinTwit or Reddit, but what does it even mean? Quant investing sounds like a futuristic and techy word. In reality, quant is just short for quantitative analysis. Which is a fundamental look at the underlying numbers and historical data to predict the future behavior of the stock or option.
Using this data, analysts are able to create algorithms and other computer models to make presumably profitable investing decisions. Is this starting to sound familiar? If you hang out on FinTwit, you’ve no doubt heard of people referring to the institutional algos, or algorithms, having an effect on the markets.
A majority of these algos use quantitative analysis to form entry or exit prices, as well as establishing support and resistance levels. An estimated 70-80% of trades carried out on the U.S. markets are by algorithmic traders. Needless to say, quant analysis is an important part of the financial world. Which is why we’re doing this Quiver Quantitative review.
Quiver Quantitative Review of the Data They Offer
At first glance, the site looks fairly basic without any advertising or distractions. But once you dive into the heart of Quiver Quantitative, you can quickly see just how valuable this information is. At the very top of your dashboard is a giant search bar, where you can enter the name of most stocks available on the U.S. markets.
It’s a very clean and simple interface for users to learn, and after a few searches, it becomes clear how easy the site is to navigate.
Once you have searched for the stock that you wish to research, you are presented with several groups of data points that you can choose to look at. The first subgroup is View Data by Source.
Quiver Quantitative Review of the Search Filters
Now, these aren’t your typical search filters for when you are doing research into a stock. You won’t find things like price/earnings ratios or CAGR. But you’ll find some interesting alternative data sets that you probably won’t be able to find as easily if you looked on your own. You can see this first set of data points is linked to trading activity within the U.S. government.
Why is this significant? Well, there’s a longstanding belief amongst retail investors that American politicians are engaged in insider trading and other corrupt methods of gathering early information about publicly traded companies. A prime example of this was the recently exposed trading activity of Nancy Pelosi and her husband; who owns a California Venture Capital firm. The couple bought several million dollars worth of Microsoft (NASDAQ:MSFT) call options a couple of weeks before the company was handed a massive $22 billion deal with the U.S. army.
Well, now retail investors who are suspicious of what our politicians are doing with their portfolio can track things like Senate Trading, House Trading, and Government Contracts. So now you can keep track of what Nancy Pelosi is trading in her account.
Public Market Sentiment
The next subgroup is another important one for both retail investors and institutional investors alike. Which is why it’s in out Quiver Quantitative reivew. It’s the public market sentiment for your chosen stock. It shows things like the company’s corporate Twitter popularity, how often it is mentioned on certain Reddit subgroups like r/WallStreetBets, and how many times people have viewed the company’s Wikipedia page.
These are all very simple metrics, but are definitely indicative of the way in which retail investors do their research on a given stock. Which we wouldn’t know without this Quiver Quant review.
Quiver Quantitative even offers a very cool looking trend map that tells you exactly how much a certain stock is trending by how many times it’s mentioned in r/WallStreetBets. It also provides a color-themed temperature gauge to show if the talk is heating up or cooling off.
Interestingly enough, Quiver Quantitative also provides charts for each stock’s popularity on some non-traditional investing sites like Hackernews and StackOverFlow; two websites devoted more to computer programming than everyday investing.
The final main subgroup of data topics are actually qualitative analysis points that you can look into such as Insider Trading, CEO Compensation, and even the frequency and destinations of corporate jets registered to each company.
Hedge fund managers routinely track these flights to figure out where and when the next potential deals will be. This is some truly next level research that Quiver Quantitative is providing to retail investors for free! That makes us excited about this Quiver Quantitative review.
Who Owns Quiver Quantitative?
We found in this Quiver Quantitative review that James Kardatzke is the CEO and co-founder of Quiver Quant. It says co-founder. However, a search didn’t turn up who the other person is who helped to found the company. But it’s still a relatively new company. It’s less than three years old. We’ll see if and then they start charging for it.
Or they could offer a free version and a paid version that has more search callabilities. Keep an eye on this Quiver Quant review to see any updates or changes that could potentially come at some point.
Should We Be Worried About Insider Trading?
The jury’s still out on whether or not Insider Trading should be important to our long-term thesis of a company. We can all agree that when insiders buy more shares of their company, it’s far more significant than when insiders sell shares. When insiders sell, it’s not necessarily indicative of how they feel about the company.
Instead it’s often to free up capital that’s been tied to things like stock-based compensation. A perfect example of this is when companies IPO or make a direct listing. There’s usually a lockup period expiry after a few months; which means insiders are free to sell shares that were locked up during the IPO phase.
An example of this that made recent headlines was when executives of the data-analytics company Palantir (NYSE:PLTR) sold tens of millions of dollars in stock once the lockup expiry period ended; causing a massive dip in the price of Palantir’s stock. It is nice to know this Quiver Quant review let’s us know we can see where insider trading takes place, and sometimes that can be a great stock signal.
Quiver Quantitative Review of Other Tools
The final subgroup is vaguely titled as Other Tools. It’s safe to presume that the team at Quiver Quantitative are looking for new categories to add to the search pages. And this seems like a perfect group to add them to. Here there are only three different data points you can search; COVID-19 research, Patent Search, and Corporate Lobbying.
COVID-19 research is obviously specific to biotech and pharmaceutical companies, and is keeping track of each specific firm’s clinical study progress for vaccine candidates. The COVID-19 vaccine sector was one of the most popular ones to play over the past year. And as the world continues to demand more doses, Quiver Quantitative is keeping investors up to date on how the rest of the companies are doing.
The Patent Search is an interesting option. This allows users to search for any existing patent that’s been granted by a government agency like the FDA. The heat map type diagram is a little difficult to use and probably isn’t the most user friendly way of doing it. It has a scatterplot of all of the current patents approved. But the end result is sort of a jumbled mess.
Each dot represents a patent. It gives a brief background on each as well as the stock ticker symbol that it’s associated too. Investors in early stage biotech and medtech companies will probably find this screen extremely useful; even if it isn’t the most organized layout.
Final Verdict on Our Quiver Quantitative Review
We found in our Quiver Quantitative review that there’s a lot to like. For a site that is just over a year old, it’s easy to get excited about what it could eventually evolve into. Signing up for a free account is simple and only takes a minute to do. The layout is simple and easy to navigate. And the way the site flows is very intuitive with very little clicking around; or going back and forth between pages.
There isn’t much in terms of instruction or data analysis and how you can use it for stocks. But it’s probably because Quiver Quantitative doesn’t want this to be mistaken as providing financial advice on which stocks to buy.
Is the data useful? Sure! It gives retail investors a rare look at what institutional investors pay big money to see. And it’s definitely a step in the right direction of leveling the playing field for the little guys on Wall Street. The data is great. But it probably won’t make up a good portion of your due diligence on a stock.
It’s more like adding on interesting facts that may or may not be indicative of how a stock will move. But hey, for now, it’s free. Information like this isn’t something you’ll ever find when studying a company’s balance sheet. Looking for more reviews? Check out Zacks Research.