{"id":112292,"date":"2023-10-10T15:36:11","date_gmt":"2023-10-10T15:36:11","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=review&p=112292"},"modified":"2024-04-04T11:02:06","modified_gmt":"2024-04-04T11:02:06","slug":"altindex-review","status":"publish","type":"review","link":"https:\/\/www.techopedia.com\/investing\/altindex-review","title":{"rendered":"AltIndex Review 2024 – Pros & Cons Revealed"},"content":{"rendered":"
In this AltIndex review<\/strong>, we cover everything there is to know. Read on to discover AltIndex’s key features, pricing, target market, benefits, and drawbacks.<\/p>\n At its core, AltIndex<\/a> is an alternative data provider<\/a>. It extracts and analyzes data outside of traditional sources to yield investment insights. This includes social media networks like Facebook, Twitter, and Reddit. For example, AltIndex will analyze public sentiment on a stock based on followers, likes, mentions, and shares.<\/p>\n If sentiment is positive, AltIndex will assign the stock a high score. And conversely, low scores are awarded to stocks with a negative sentiment. In addition to social media, AltIndex also analyzes website analytics. Data points include total website websites and how this compares to historical periods and industry competitors.<\/p>\n <\/p>\n It also examines how long users spend on the website and which specific pages are being viewed.\u00a0This can yield notable insights – especially on stocks with an e-commerce and digital presence. AltIndex also analyzes employee satisfaction and job posting statistics. If a company is increasing its workforce, this highlights that it’s looking to expand.<\/p>\n As an AltIndex user, you can view all of the data points and insights mentioned above. That’s not all – AltIndex utilizes its findings to generate stock recommendations. This is based on AI-generated ratings based on broader consumer sentiment. Stock recommendations are sent via email and have a historical win rate of 75%. Our AltIndex review also found that the platform offers stock alerts, which are ideal for keeping tabs on your portfolio.<\/p>\n In addition to stocks, AltIndex also tracks the best cryptocurrencies to trade<\/a>. This includes Bitcoin, Solana, Ethereum, and Litecoin. AltIndex offers a free plan that allows users to try its core services. However, the free plan comes with limitations – such as the number of stock alerts or recommendations posted. Paid plans cost $29 or $99 per month, depending on your requirements. We cover pricing in a lot more detail later in this AltIndex review.<\/p>\n In this section of our AltIndex review, we’ll take a much closer look at its core services.<\/p>\n The entire AltIndex ecosystem revolves around alternative data. So what is alternative data<\/a> and how does it help investors make smart decisions? In a nutshell, alternative data is information outside of conventional sources.<\/p>\n This is where alternative data comes in. Put simply, AltIndex offers investment-related information that isn’t commonly available. At the forefront of this is social media insights. After all, billions of people use social media networks<\/a> like Facebook, Twitter, and Reddit. This means social media is ideal for gauging broader sentiment on stocks.<\/p>\n AltIndex leverages machine learning and natural language processing to extract social media comments, likes, mentions, shares, followers, and subscribers. It then analyzes the data to generate consumer insights.<\/p>\n <\/p>\n For example, consider a technology stock that has just released a new product. AltIndex would assess whether comments surrounding the product are positive or negative. This can help evaluate sales of the product and in turn, revenues for the company.<\/p>\n AltIndex doesn’t just<\/em> rely on social media sentiment analysis<\/a>. It also analyzes other alternative data points. As we explain shortly – all data points are packaged together to yield an overall investment score.<\/p>\n AltIndex also analyzes job posting data. The idea here is simple – if a company is posting an increasing number of job requirements, it’s looking to expand. Investors react positively to growth ambitions, but you’ll know about this before it becomes common knowledge.<\/p>\n Our AltIndex review also found that the platform tracks and analyzes website analytics. This is particularly useful when investing in stocks with a strong digital presence. For example, e-commerce marketplaces like Amazon and Etsy, or brokerage platforms such as Interactive Brokers and Robinhood.<\/p>\n For instance, let’s suppose that the Interactive Brokers website has seen a surge in website visits. Not only when compared to previous periods but also industry competitors (e.g. other online brokers). This could mean that more people are trading on the Interactive Brokers website, meaning more commissions and revenues. This could result in Interactive Brokers’ stock price<\/a> rising.<\/p>\n We've discussed the fundamentals of AltIndex - it tracks and analyzes alternative data. However, the sheer amount of data available can be overwhelming. This is where AltIndex's AI ranking scores come in.<\/p>\n AltIndex leverages artificial intelligence to package all of its alternative data points together and yield a score between 1 and 100.<\/p>\n There is a lag between AltIndex scores and stock price movements. This is good news for you as an investor, as you'll have a first-mover advantage. For example, let's say that an online retail stock has a high AI score because of increased website visits, consumer sentiment, and app downloads.<\/p>\n <\/p>\n The theory is that this will result in increased revenues for the retail company. However, this won't become apparent until it releases its quarterly earnings report. You'll be able to buy the retail stock long before its earnings call, which gives you a solid time advantage.<\/p>\n We should also mention that AltIndex is suitable for short-selling stocks. If a stock has a low AI ranking score, it could go on a prolonged decline in the following months. The best day trading platforms<\/a> allow you to short-sell stocks via CFDs, options, and futures. As such, you can attempt to profit from rising and falling stock trends.<\/p>\n Our AltIndex review also found that the platform offers one of the best stock alerts services<\/a>. This enables you to keep tabs on your investment portfolio automatically, as you'll be notified of key market movements.<\/p>\n First, you'll need to add your stock and cryptocurrency investments to your AltIndex portfolio. Thereon, you'll be notified when an alternative data metric is triggered.<\/p>\n Once you receive the notification, you can make an informed decision. For example, if you believe that Adobe is becoming less popular with consumers, you might decide to remove the firm from your portfolio.<\/p>\n <\/p>\n AltIndex also enables you to receive stock alerts on companies you're not currently invested in. This can help you discover key insights and make new investment decisions. Moreover, you can also decide which indicators you're alerted on - such as sentiment scores, Reddit mentions, or website traffic.<\/p>\n AltIndex is also useful when searching for trending<\/em> stocks. There are several options available. For example, you can view which stocks are trending on WallStreetBets - the popular Reddit group behind the meme stock rally of 2021.<\/a><\/p>\n For this metric, AltIndex focuses on two key data points - the number of mentions on WallStreetBets and overall sentiment. For example, in the prior 24 hours, AltIndex shows that Tesla stock received 220 mentions on WallStreetBets - an increase of 400%. However, sentiment on Tesla stock is currently neutral.<\/p>\n <\/p>\n Lockheed Martin yields stronger results. It received 125 mentions in the prior 24 hours - an increase of 380.8%. Crucially, Lockheed Martin has overall bullish sentiment on WallStreetBets. In addition to WallStreetBets, you can also view trending stocks on 4chan and the wider Reddit platform.<\/p>\n Our AltIndex review tested the platform's stock screener. This is proprietary to AltIndex and allows you to find suitable stocks for your portfolio. First, you'll need to choose your preferred data point.<\/p>\n For example, Facebook followers, patents, or AI scores. Second, you can narrow your search by the preferred industry. Like many features on AltIndex, you'll need a paid subscription for full functionality. After the top two results, you'll find that data is restricted.<\/p>\n In our view, AltIndex offers one of the best AI stock pickers<\/a> in the market. In fact, this was the standout feature from our AltIndex review.<\/p>\n Let's break it down. First and foremost, this is a fully automated service. You'll receive a real-time alert telling you exactly which stocks to buy or sell. AltIndex's stock recommendations are based on its alternative data metrics.<\/p>\n As we mentioned, all data points are analyzed by machine learning and artificial intelligence. This includes everything from job postings, employee satisfaction, and social media sentiment to website analytics, patent filings, and financial news mentions.<\/p>\n <\/p>\n Not only are you notified when a stock recommendation is generated, but you get a clear overview of the reason. This is congruent with explainable artificial intelligence<\/a>, as it provides reasoning behind its decisions. For example, AltIndex recently generated a sell recommendation on Robinhood stock. Some of the reasons behind this include a long-term decline in:<\/p>\n Crucially, AltIndex is one of the best stock tips services<\/a> for past performance. Since its inception, AltIndex has had a historical win rate of 75%. More importantly, its picks generate average 6-month gains of 24%. When compared to benchmarks like the S&P 500<\/a>, AltIndex is comfortably outperforming the broader stock market.<\/p>\n That said, these returns are based on past performance and do not guarantee future returns. Nevertheless, the majority of stock recommendations remain open for 3-9 months. When the position should be closed, you'll be notified in real-time. This ensures that you can trade stocks passively, as you simply need to place the suggested market order.<\/p>\nWhat is AltIndex?<\/span><\/h2>\n
AltIndex Services<\/span><\/h2>\n
Alternative Data Insights<\/strong><\/h3>\n
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What Assets Does AltIndex Track?\u00a0<\/strong><\/h4>\n
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AI Ranking Score <\/strong><\/h3>\n
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Stock Alerts <\/strong><\/h3>\n
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Trending Stocks\u00a0<\/strong><\/h3>\n
Stock Screener\u00a0<\/strong><\/h3>\n
AI Stock Picks\u00a0<\/strong><\/h3>\n
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