Bonn/Frankfurt am Main, January 9, 2020. The Europe Big Data Sentiment Index (BDX) closed at 299.66 points in 2019. The closing price of the BDX in 2019 was only slightly below its all-time high of 303.35 points which was reached just a few days before the end of the year. With a total performance of +43 percent, the index clearly outperformed the European benchmark, the Stoxx 600 Index (+23 percent), as well as the main German index. The DAX closed at +25 percent in 2019.
The index is a joint development of index provider Solactive AG and data analytics company Stockpulse GmbH based in Bonn. Stock selection is based on a new and innovative approach: by using state-of-the-art artificial intelligence (AI) and deep learning methods, those stocks are identified which are expected to outperform the benchmark in the following quarter. This is based on fully automated sentiment and natural language analyses. StockPulse’s programs constantly scan the Internet for tweets, comments, opinions and news on latest stock market developments. Algorithms analyze the emotional data in real time and condense it into sentiment scores. The mood of the market participants towards individual stocks is the major driver for the composition of the BDX. The Solactive Europe Total Market 675 Index serves as the base universe.
“Even a financial market professional like Mr. Kostolany knew that stock prices are very much driven by emotions. With the Europe Big Data Sentiment Index, Solactive and StockPulse initially developed a quantitative and data-driven indicator based on market sentiment. It convinced with an above-average performance in 2019.”, says Stefan Nann, CEO of StockPulse. He adds: “Scientific studies and numerous practical applications, that we have developed for our clients such as financial service providers or publishers, show that the complex analysis of emotional data can generate clear Alpha for investors”.
The Europe Big Data Sentiment Index (BDX) currently includes the following stocks:
Aareal Bank AG
Aroundtown SA
Aurubis AG
Bechtle AG
Carl Zeiss Meditec AG
CTS Eventim AG & Co KGaA
Delivery Hero SE
Deutsche Boerse AG
Deutsche Post AG
Dialog Semiconductor PLC
EssilorLuxottica SA
GEA Group AG
HeidelbergCement AG
Hella GmbH & Co KGaA
Henkel AG & Co KGaA
HUGO BOSS AG
LVMH Moet Hennessy Louis Vuitton SE
METRO AG
SAP SE
Schneider Electric SE
Siltronic AG
Societe Generale SA
Index rebalance is done every three months in March, June, September and December.
The development of the Europe Big Data Sentiment Index (BDX) is available under ISIN DE000SLA7W00. The calculations of the BDX go back to 2012, the cumulative performance at the last trading day of 2019 was +200 percent (21.09.2012 to 31.12.2019*). Further information on the index, the rules and regulations can be found on bdx-online.de. Investors can participate on the performance of the BDX via an index certificate from UBS bank (ISIN: DE000UBS1BX9). For investors, the certificate on the BDX is now also available as a savings plan at comdirect bank.
* Important information: Before the first calculation of the BDX (Solactive Europe Big Data Sentiment Index NTR) on March 14, 2019, a backtest starting from 21.09.2012 has been available based on historical data.
