In today’s world, most (if not all) decisions are made based on data. This is especially true in the financial markets where data is in abundance. When it comes to making any investment decision, information is collected to simplify the decision-making process. Over the past 20 years, financial databases have exploded in size.
One such database that is extremely resourceful and provides you access to equities is EODHistoricalData.com. The stock market, in particular, has become increasingly data-rich. The available amount of data can be overwhelming at times. Many financial firms employ teams of data scientists that comb through large data lakes looking for signals used to forecast future market movements.
There are several other companies in this space, but EOD Historical Data is building a niche by staying true to its core value proposition. The team offers excellent customer service, is very passionate about ensuring high-quality data, and is constantly innovating and delivering in new areas and asset classes.
As the amount of available data keeps growing, thereby increasing complexity in market behavior, EOD Historical Data offers a variety of tools and solutions you can leverage to make an investment decision faster.
In fact, there are over 760 million financial data points available on the EOD Historical Data platform right now. It provides more than 30 years of historical data and over 20 years of fundamental data. EOD Historical Data covers more than
- 150,000 tickers: The platform supports over 70 stock exchanges all over the world. All exchanges in the U.S. such as NYSE and NASDAQ are combined into a single virtual exchange called ‘US’
- 20,000 ETFs: It supports more than 20,000 U.S. funds The database includes equity funds, bond-based mutual funds as well as balanced funds. Further, EOD Historical Data provides details for over 10,000 ETs from other countries.
- 600 Indices: You can take a look at the list of supported indices here.
- 1100+ forex currency pairs: EOD Historical Data provides data for more than 150 currency pairs
- Cryptocurrencies: The platform supports data for more than 120 cryptocurrencies with USD.
- Futures & Commodities: You can also access data for futures and commodities on this platform.
Being able to identify trends amid the noise is becoming increasingly difficult. So, you need to set up a reliable and accurate system to cut through the noise and predict future market movements.
The use of data today is not limited to large investment banks. All types of investors, including retail investors, fintech startups, private portfolio managers, and freelance financial data analysts, use real-time and historical data. Apart from informing their buy, sell or hold decisions, they typically use it to answer questions like:
· How do I design a portfolio that includes the right mix of stocks, bonds, commodities, cryptocurrencies, etc.?
· How do I incorporate measures of volatility such as standard deviation and beta into my portfolio management?
· How do I use models like Modern portfolio theory to build the best portfolio?
· How do I determine if an asset has a positive or negative expected return?
· How do I make use of fundamental market data like earnings, revenues, leverage, and dividends?
Other types of data available on the EOD Historical Data platform
With respect to end-of-day data API, EOD Historical Data covers all stocks, ETFs, and mutual funds in the U.S. totaling over 120,000. So, you will have access to Ford’s historical stock price dating back to 1972. The data for most other stock exchanges are available from Jan 3, 2000, on a daily, weekly, or monthly basis, adjusted for splits and dividends.
The user can also look at 20 years of fundamental data that can be assessed to analyze a stock’s intrinsic value.
EOD Historical Data provides the user with delayed stock prices via API for all subscribers. The prices are live but delayed by 15-20 minutes and you can access information related to most stocks in the world.
You can in fact obtain this data with a single financial API in the all-in-one package for just $79.99, making EODHistorical Data one of the cheapest platforms among peers. Another important benefit is its pricing policy is the day limits for API Calls that stand at 1000/minute.
While EODHistoricalData provides this feature in its basic plan, other platforms may charge an additional price for such a high number of API calls. The number of API calls each is limited to 100,000/day but the figure can be increased on request.
The users can also obtain all this data with a single financial API in the “All-In-One-Package” which is priced at just $79.99, a deep discount when you compare prices with other service providers.
Finally, the platform is also testing real-time data with a delay of 50ms. The real-time API will be available for users within the next week or two that will provide data for U.S. stocks, Forex as well as for cryptocurrencies.
EOD Historical Data supports your investment and trading strategy
Investors often require different types of data sets. Studying and analyzing the data helps them better understand how the market works and which factors influence it. While data has become central in trading, it is used differently by different types of investors all of whom are supported by EOD Historical Data’s portfolio of solutions. Broadly speaking, there are two types of people who invest in the stock market- fundamental investors and technical traders.
1. The fundamental investors are usually interested in reading about how a company makes its money and whether it will continue making money for years to come by providing goods or services that customers want at a price they are willing to pay. Therefore, fundamental analysis looks at data such as sales growth, profit margins, debt load, and other financial metrics listed in financial statements filed with regulatory agencies such as the SEC (Securities & Exchange Commission). In addition, these analysts may focus on a company’s management, looking at whether a company’s leaders have a track record of making good decisions and a history of providing an excellent return to shareholders. Finally, fundamental analysts tend to be interested in a company’s financial statements and use them to predict future stock prices.
2. On the other side are technical traders who use chart patterns, volume factors, and moving averages based on past price action to predict future price movement. This analysis is on the assumption that market behavior repeats itself. The stock market is analogous to a complex machine that is affected by many factors. These factors influence the creation of specific patterns, and each pattern has its logic. Studying historical price charts, for example, helps to understand the reason for different market patterns. Referred to as chartists, technical traders use data of a different nature – share price, volume, open interest, put/call ratios, put/call skew, bid-ask spreads as guides. They scan the market looking for clues that might have given the first look into how these stocks behaved or traded in the past and let history help predict future behavior.
EOD Historical Data caters to both kinds of stock market participants. Along with a data strategy, an investor would also typically have a trading strategy. In the world of finance, there are hundreds of trading strategies to choose from.
However, most investors gravitate towards methods that are easy to understand and implement. Two popular strategies that are easy to understand and implement are momentum investing and value investing.
1. Momentum investing operates on the idea that certain stocks will continue to trend higher (or lower). In layman’s terms, momentum investors are betting that stocks will continue to move in the same direction. The strategy is simple to understand and implement. When momentum investors invest, they are betting that the stock will continue to move higher. Conversely, momentum investors typically sell stocks when the trend reverses. The use of historical stock price data is critical in momentum trading. You examine ongoing changes in price movements for clues as to how the investment might perform in the future. It is often thought that prices trend in one direction until they suddenly reverse course. Accordingly, selling a security before it begins to fall and buying one before it begins to rise will enable you to profit from the imminent price reversal. Investors who employ momentum trading also utilize other strategies, such as exercising complete market timing and trading directionally. Are prices trending and, if so, can you identify and profit from steep and prolonged trends?
2. Value investing functions on the idea that the market undervalues certain stocks. Investors buy stocks that they believe are undervalued by the market and sell stocks that they think are overvalued. Investors who employ this strategy are looking for stocks trading at prices that are substantially below their intrinsic value. The investor would buy the stock and wait for it to appreciate before selling it for a profit. Investors who adopt a value investing strategy make use of the company’s fundamentals data and look at metrics like EBITDA, EPS, P/E ratio, dividends per share, dividends yield, etc.
You can get access to all the above-mentioned tools when you subscribe to the EOD Historical Data platform.
What you should know before choosing a financial data provider
Predictive analytics has grown in popularity in recent years, along with statistics and machine learning. There is one common thread that connects these three domains – Data. All predictive analytic tasks rely heavily on data. Lack of available data can hamper the effectiveness of a predictive analytics project. In many cases, modeling can only start when sufficient historical data is available.
Data accuracy is equally important. In the world of machine learning, the accuracy of data is measured in terms of its precision and recall. Recall is defined as the number of times a data point appears correctly in a given dataset, and precision is defined as the number of correct data points divided by the total number of data points.
Precision and recall are essential concepts to know when analyzing large amounts of data. They are vital when analyzing financial data, given that it is susceptible to errors. Moreover, the data tends to be highly nonlinear in the financial markets, and therefore model building can be complicated.
Having a data provider like EOD Historical Data gives you seamless access to real-time and historical data is the first step and a significant factor.
There are several aggregators in the market today who pull data from multiple sources, including stock exchanges, currency exchanges, government bodies, etc. These sources typically get consolidated onto a common platform and then made available via various mechanisms. As a data manager or an analyst, it would be helpful to know which data source has the highest volume of historical data, the most reliable, the most accurate, the most up-to-date, and so on. Let’s explore each of these aspects and then see where EOD Historical Data ranks highly, in detail.
Know what kind of data you require. There are no limits to the diversity of the sort of data you can procure from data providers. Some key data points include company attributes, historical stock prices, financial data, company news, analyst research, company charters, sec filings, financial highlights, top traders, sector analysis, etc. If you seek to do a highly granular analysis of a company, a provider providing additional data such as news analysis is likely to come out as your best choice.
- How comprehensive is the data regarding the number of exchanges and securities available per country/region? The data provider should be able to provide data from a variety of sources. Some data providers have an extensive network of financial data from countries all over the world. This variety in data sources is a great plus for traders who rely on a wide range of data. For example, consider India, a market that has several small non-technologically advanced exchanges. An analyst or portfolio manager may or may not require data from the smaller exchanges, but it is something to consider at the onset.
- It is crucial to consider the granularity, depth, and calculations of data provided for each instrument. For example, are you looking for advanced metrics like exponential moving average (EMA), Volatility (Variance between returns), Stochastic Technical Indicator, Relative Strength Index (rsi), Standard Deviation, etc.? Or are you a data scientist who wants to train complex predictive models and require raw data from the provider.
- The historical range of the data and the level of consistency the data maintains is also of critical importance. For instance, is a daily update of close prices available from 1995 onwards, or does the data provider offer daily data starting from 1980? Does the data provider offer intraday (day-time), daily minute, hourly, weekly, or monthly data? Again, your strategy may dictate the type of data you need.
- Another factor from a portfolio management perspective is the availability of data for different financial instruments. Choosing a single provider with access to data from the stock market, bond market, mutual fund market, Commodities market, forex market, and economic data will be easier and quicker to integrate with as compared to having multiple providers
Data is the lifeblood of fundamental research, and it is critical to ensure good quality data that is up-to-date. The following factors should be considered concerning data quality:
- Source: If data has exchanged hands multiple times, the chances of it getting corrupted increases significantly. The data should ideally be sourced directly from exchanges instead of a third party. This will not only ensure the integrity of the data but also boost its trustworthiness.
- Completeness: The provider should have measures in place to identify and fix missing data. The data should also be audited at periodic intervals, and data quality parameters should be monitored closely to ensure that raw data such as tickers, names, prices, etc., are accurate. Depending on the time and resources, ad-hoc or periodic & automated checks should be done on the data to ensure integrity. If necessary corrections and documentation are not done for historical stock data, investors/data analysts will spend time finding anomalies. In addition, if there are critical blanks in the data, it may hinder investment analysis.
Most data providers offer the ability to export data in specific formats. Also, the data can be pulled or pushed into the user’s application. For real-time data like stock prices and trade information, it would be ideal for the provider to push a feed to a specified list of applications. Users should be able to customize and filter the data before it is delivered. In addition, investors should determine how easy it is to integrate the data with multiple applications, e.g., Excel, R, Python, MATLAB, etc. Ideally, the data provider should have an API to integrate the data with the most commonly used applications. Having no-code options will also save time and effort trying to figure out how to retrieve data from an API or stitch together the data from multiple APIs.
What is the level of customer support offered by the vendor? Service after the sale is essential. What if something goes wrong with the data feed during trading hours? Does the vendor provide after-hours support? Are users supplied with manuals and online help that would assist with troubleshooting? Does the vendor provide their customers with webinars, online videos, weekly newsletters, free trials, or other means to learn about their services? As mentioned earlier, financial data is often prone to errors, and having a provider who can work with you to fix data completeness or data validation problems should be a significant determining factor. Support is essential, but knowing that the vendor is actively involved with the community is an added benefit
Compatibility with tools
Once good quality data is available and reviewed, it is time to reflect on ingesting it into the analytics software you use. Several companies can provide data, but not all can offer it in a format that your software would accept.
How much does this cost? A vendor can have an excellent reputation and be a superb resource for data. Still, if their pricing is unrealistically high, the costs of using their data could outweigh the benefits. It is essential to compare and contrast what different companies charge for data, then compare this cost against the benefits you can obtain. A good practice is also to compare the cost of data versus the analysis cost for each option. Consider the type of data service you need, the level of detail, product type, and whether or not you need access to historical data before deciding.
What is EOD Historical Data?
EOD Historical Data is a financial data services company operating in this space for the last six years. It houses more than 30 years of historical data and also provides real-time financial data feeds. The EOD Historical Data platform is built to meet the requirements of multiple investors including hedge funds, brokerages, private equity funds, banks, individuals and other fintech companies. The financial data provided through the EOD Historical Data platform is updated daily and refreshed every five minutes. In addition, the platform syncs with all the major exchanges around the world and discloses all its sources. Below is an analysis of the service based on the evaluation factors described above:
EOD Historical data houses data across multiple financial instruments, including Live (delayed by 15 minutes) prices for stocks, indices, ETF’s, mutual funds, futures, commodities, bonds, Forex, and cryptocurrencies. It also has fundamental data for most of the above instruments, including historical data of more than 30 years for all major companies. Moreover, it also has macroeconomic data for all major economies.
This includes and is not limited to indicators such as GDP, unemployment rates, inflation, income, etc. Overall, this platform ticks all the significant boxes from a data comprehensiveness standpoint and can be a one-stop shop for investors looking to source data for their portfolio management needs.
EOD Historical Data has a big pool of historical data and syncs a large amount of data from various sources on an ongoing basis. Several providers in the market source data from open source platforms like the Yahoo Finance API or Google Finance API. However, EOD Historical data source their data directly from exchanges (NASDAQ, London Stock Exchange, Cboe Europe Equities, etc.). This is a significant factor in ensuring data quality.
Maintaining the quality and integrity of data becomes increasingly important as the data grows in size. Although the data undergoes rigorous testing and quality checks, the company recognizes that data-related issues are inevitable. Therefore, it focuses heavily on post-sales service and working with end-users to quickly resolve issues.
EOD Historical Data confirmed for the end-of-day and delayed data, it has direct contacts with multiple exchanges and the corresponding data streams. The data for U.S. stocks is obtained from NASDAQ Cloud API while the U.K data is derived from the London Stock Exchange.
For fundamental data, it collects data from financial news providers, corporate websites and published annual reports. These data sets are then re-compiled and re-calculated by leveraging Altova Solutions. EOD Historical Data also uses Natural Language Processing and Machine Learning to read and interpret data from company news, press releases, and financial reports.
This is probably one of their big advantages.
a) EOD Historical Data has built a very flexible API that integrates with almost all the major environments. The API can be called using python, Java, Excel VBA, R, C#, etc., and API responses can be in JSON or CSV formats. They have extensive documentation and sample codes for each type of access. The platform also has several ready to go or no-code solutions for someone unfamiliar with coding. These no-code options allow the user to import the data into Excel or Google Sheets.
b) EOD Historical Data provides data with flexible levels of access. You can get access to all the datasets or pick specific instruments to customize a portfolio of data.
c) The platform can be accessed for free as well. The only limitation is the number of API calls (20) that can be made in a day. This is an excellent option for someone interested in testing out the platform and the data.
One of the most important factors that users need to consider right now is access to an API key that can be gained right after subscription.
Users can use EOD Historical Data’s live stock prices plugin for WordPress for over 70 stock exchanges and 120,000 stock symbols that include forex and cryptocurrencies. This data can be published on your own blog or company website. This feature can be easily integrated and requires no coding skills.
The company’s Python Financial APIs SDK can be used for data extraction for financial valuation, macro-economic analysis, sentiment analysis, option strategies, technical analysis as well as the development of machine learning models.
EOD Historical Data has also created an excel add-in to download end-of-day and fundamental data directly onto the spreadsheet.
EOD Historical Data has a very responsive and helpful support team. The entire team’s focus is on customer service, and they work closely with the users through the whole process of testing, integrating, and using the platform. They also have a very active blog where they share product updates, partnership updates, and their thoughts on various aspects of data.
EOD Historical Data provides assistance to users via webchat or email for those grappling with data extraction or usage issues. Its support services are available for users who subscribe to the free package as well. While fundamental data is not available on the free package, you can use a demo API key https://eodhistoricaldata.com/api/fundamentals/AAPL.US?api_token=72f6sd5r12c4n75.12963092 to test data quality even without registering on the platform.
Compatibility with tools
The data obtained via the API can be fed into any system compatible with the output formats. As described above, there are no-code options that integrate with Google Sheets and Excel. In addition, EOD Historical data recently announced a partnership with XLQ2, a financial analytics application that accepts data from multiple sources.
EOD Historical Data offers a range of subscription plans that are pretty flexible and allows users to access data at a monthly rate. There are no up-front or fixed costs, and their pricing is competitive. They have different price points based on the number of API requests per day and the type of dataset for which access is needed.
The platform’s most popular package is the all-in-one subscription that costs $79.99 each month as it provides users with maximum value and includes the benefits of all other subscription tiers.
For $79.99/month, you can get 100,000 API calls per day, 1,000 API calls per minute, and data for more than 30 years.
The platform’s pricing platform does not include long-term obligations as the minimum subscription period is for a single month. Further, the subscription price is fixed forever and will not be changed in the future.
Another important cost feature that current and potential subscribers should know about is EOD’s API calls of 1000/minute that is provided in its basic package. Comparatively, its competitors charge an additional price for such a high amount of API calls.
The final takeaway
At the core of it, any type of investor is interested in reliable financial forecasting. This essentially means looking into the future and estimating how a company or group of companies will perform and how the industry will react to potential changes in the future.
As an investor, having a reliable data provider and a single source of truth would allow you to have greater confidence in your forecasts and plans. In addition, automating data feeds of real-time and historical data would help reduce planning time and unify company-wide planning.