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Information Spectrum of Diffusion – What Analysts Need to Know


Quandl, which is a source of financial, economic, and alternative data, created a graphic called The Spectrum of Diffusion, describing the stages of information diffusion (accessibility) from "untapped" to "fully commoditized."



By Raquel Sapnu, Quandl.

Throughout the history of capital markets, investors have used different tools to analyze investment opportunity. The tools available have increased exponentially with the advent of the internet. While readily-available metrics like P/E ratio may still be important to an investor's analysis, we now have access to satellite data, wearable technology data, foot traffic data, and much more. The investors who are seeking alpha in the next decade will be well-advised to pay attention to these developments. Companies like Quandl, Orbital Insight and Placemeter among others are curating and providing this data to investment professionals.

Quandl, which is a source of financial, economic, and alternative data, created a graphic called The Spectrum of Diffusion that I've chosen to summarize here. It describes the stages of information diffusion (accessibility) from "untapped" to "fully commoditized."

Spectrum of diffusion

Nascent (Untapped) - Get a jump on the competition by seeking out sources in these industries:

  • Nanosatellite
  • Drone Imagery
  • IoT (Internet of Things)
  • Wearable Tech
  • Food Prices in Developing Countries
  • Ag Tech

Diffusing Now - Not yet looking at these types of data? Time to start:

  • Sentiment Data
  • Advertiser Spending
  • Satellite Imagery Analysis
  • Economic Data
  • Transportation

Fully Diffused - These are some of the table stakes for anyone undertaking market analysis:

  • Stock Prices
  • Stock History
  • Fundamentals
  • Futures

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