What is Alternative Data? Uses, Types & Dataset Examples
What is Alternative Data?
Alternative data refers to non-traditional sources of information used to gain insights and make informed decisions. It includes data from social media, satellite imagery, web scraping, credit card transactions, and more. This data complements traditional sources like financial statements and market reports, providing unique perspectives and uncovering hidden trends. Alternative data is increasingly utilized by businesses, investors, and researchers to enhance their understanding of markets, consumer behavior, and various industries.
Examples of alternative data include satellite imagery, social media posts, credit card transactions, web scraping data, and sensor data from Internet of Things (IoT) devices. Alternative data is used for various purposes such as investment research, credit risk assessment, supply chain analysis, and consumer behavior prediction. In this page, you’ll find the best data sources for alternative data, including alternative data APIs, alternative data sources, alternative data examples, alternative financial data, and alt data sets.
Best Alternative Data Databases & Datasets
Here is Datarade's curated selection of top Alternative Data. These trusted databases and datasets offer high-quality, up-to-date information.
Crawlbee | Alternative Data | Web Scraping | Custom Datafeeds | Consumer Data | Commerce Data
Coresignal | Company Financial Data | Alternative Data | Global / 1B+ Records / Largest Professional Network / Updated Daily
Rappi E-Receipt Data | Food Delivery Transactions (Alternative Data) | Latin America | Granular & Aggregate Data available
Custom Data-Driven Market Research for B2B and B2C companies (Big Data + Machine Learning + Alternative Data Methodology)
InfoTrie's | Alternative Data | Custom Data Insights | E-Commerce data | Job Postings | SEC Filings | More with iFeed API
Opah Labs | USA Audience Data | B2C Healthcare Alternative Medicine Leads | Weekly Updates | API feed | 3M+ Records | 4036
Customized Alternative & Traditional Dataset Creation | Scraping Engines, Precise Data Extraction, Data Curation & Normalization | Datacie
Global Alternative Foot Traffic Data
DataSpark | Advanced Alternative & ESG Data Platform for Investment Research
Consumer Edge Transact Signal Consumer Alternative Data | USA Data | 100M+ Credit & Debit Cards, 12K+ Merchants, 800+ Parent Companies, 600+ Tickers
Top Alternative Data Providers & Companies
When choosing alternative data providers, consider factors like the provider’s data collection methods, sources, and data cleaning processes. Look for providers with a strong track record and expertise in the specific industry or domain.
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Gravy Analytics by UnacastBased in USA
Gravy Analytics and Unacast Merge to Become Leader in Location Data and Insights! Together, the new company’s strength is in its diversified client base and ... -
InfoTrieBased in Singapore
InfoTrie: Global Data Intelligence Leader since 2012. Unleash insights from unstructured data. Alternative datasets on E-commerce, SEC Filings, B2B Data, Se... -
Predik Data-drivenBased in USA
We are experts in the collection, extraction, management and analysis of large volumes of all types of data, from alternative and complex sources to traditio... -
DatacieBased in Switzerland
Datacie is an AI company specializing in extracting precise data points from unstructured data sources, crafting traditional & alternative datasets tailored ... -
DataSparkBased in USA
We design and offer NextGen Data, Cloud and Bespoke solutions to investors, financial institutions, organizations, and global corporations to empower investm...
Popular Use Cases
Alternative Data plays a pivotal role in various business applications, offering valuable insights and opportunities across industries.
Alternative Data Explained
Use Cases
Use Case 1: Investment Research and Analysis
Alternative data is widely used in investment research and analysis to gain insights into various industries and companies. By analyzing alternative data sources such as social media sentiment, web scraping, satellite imagery, credit card transactions, and more, investors can make more informed decisions about their investment strategies. This data can provide valuable information about consumer behavior, market trends, and company performance, helping investors identify potential investment opportunities and risks.
Use Case 2: Risk Management and Fraud Detection
Alternative data is also utilized in risk management and fraud detection across various industries. By incorporating alternative data sources into risk models, organizations can better assess and mitigate potential risks. For example, credit card companies can analyze transaction data to identify fraudulent activities and prevent financial losses. Insurance companies can leverage alternative data to assess the risk profile of policyholders and determine appropriate premiums. By utilizing alternative data, organizations can enhance their risk management practices and improve fraud detection capabilities.
Use Case 3: Supply Chain Optimization
Alternative data plays a crucial role in supply chain optimization by providing real-time insights into various aspects of the supply chain. Companies can leverage alternative data sources such as IoT sensors, weather data, and social media trends to monitor and predict demand patterns, optimize inventory levels, and improve logistics operations. By analyzing alternative data, organizations can make data-driven decisions to streamline their supply chain processes, reduce costs, and enhance overall operational efficiency.
Main Attributes of Alternative Data
Alternative data refers to non-traditional information that is used to gain insights and make informed decisions. It can be sourced from a variety of alternative data sources such as social media, satellite imagery, web scraping, credit card transactions, and more. The attributes of alternative data can vary depending on the specific dataset, but some common attributes include time-stamped data, unstructured data, high volume and velocity, diverse data types, and the ability to provide real-time or near real-time information. These attributes enable alternative data to offer unique perspectives and complement traditional data sources. Here’s a table of the main attributes you might find on Alternative Datasets:
| Attribute | Description |
|---|---|
| Unconventional | Alternative data refers to non-traditional data sources that are not typically used in traditional financial analysis. |
| Large Volume | It involves vast amounts of data, often in the form of unstructured or semi-structured data, which requires advanced data processing techniques. |
| Variety | Alternative data encompasses a wide range of data types, including social media posts, satellite imagery, web scraping, credit card transactions, sensor data, and more. |
| Timeliness | It provides real-time or near-real-time data, allowing for more up-to-date insights and faster decision-making. |
| Granularity | Alternative data can offer detailed and specific information at a granular level, enabling more precise analysis and identification of trends. |
| Non-consensus | It offers unique and differentiated insights that are not readily available through traditional data sources, potentially leading to a competitive advantage. |
| Correlation Potential | Alternative data can reveal correlations and relationships that may not be apparent through traditional data sources, providing new perspectives for analysis. |
| Data Privacy Concerns | Due to the nature of alternative data sources, privacy concerns and compliance with data protection regulations must be carefully addressed. |
| Data Quality Challenges | Ensuring the accuracy, reliability, and consistency of alternative data can be challenging, as it often requires data cleansing and normalization processes. |
| Data Integration Complexity | Integrating alternative data with existing data infrastructure and systems can be complex, requiring specialized tools and expertise. |
How are Alternative Data products priced?
Alternative datasets are typically priced based on various factors such as the quality, uniqueness, and relevance of the data. The pricing structure for alternative datasets can vary significantly depending on the provider and the specific dataset. Some datasets may be priced on a subscription basis, where users pay a recurring fee to access the data for a certain period of time. Other datasets may be priced on a per-use basis, where users pay a fee each time they access or download the data. Additionally, the pricing may also depend on the size and complexity of the dataset, with larger and more comprehensive datasets generally commanding higher prices. Overall, the pricing of alternative datasets is determined by the value and insights that the data can provide to users in making informed investment decisions.
Frequently Asked Questions
Where can I buy Alternative Data?
Data providers and vendors listed on Datarade sell Alternative Data products and samples. Popular Alternative Data products and datasets available on our platform are Crawlbee | Alternative Data | Web Scraping | Custom Datafeeds | Consumer Data | Commerce Data by CrawlBee, Coresignal | Company Financial Data | Alternative Data | Global / 1B+ Records / Largest Professional Network / Updated Daily by Coresignal, and Rappi E-Receipt Data | Food Delivery Transactions (Alternative Data) | Latin America | Granular & Aggregate Data available by Measurable AI.
How can I get Alternative Data?
You can get Alternative Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Alternative Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Alternative Data APIs, feeds and streams to download the most up-to-date intelligence.
What are similar data types to Alternative Data?
Alternative Data is similar to Stock Market Data, ESG Data, Credit Rating Data, Commodity Data, and Currency Data. These data categories are commonly used for Hedge Funds and Algorithmic Trading.
What are the most common use cases for Alternative Data?
The top use cases for Alternative Data are Hedge Funds, Algorithmic Trading, and Alpha Generation.