Using Finnhub Market Data and Testing Insider Sentiment Signals
Summary
The article demonstrates how to retrieve daily stock prices and company financial data through Finnhub’s API, then organize the responses into data frames. It describes the range of available information, including price history, current and historical fundamentals, and alternative data such as insider transactions and sentiment. The author also notes practical limits of the free service tier, including a restriction on historical span per request and a call-rate cap.
For a simple signal investigation, the article aligns monthly insider sentiment readings with subsequent stock returns, plots the relationship, and then repeats the inspection using a rolling average to smooth the sentiment series. The displayed analysis finds little relationship and remains noisy after smoothing. This is an exploratory example for one stock with a limited number of observations, not evidence that insider sentiment has no predictive value generally. The author suggests that a broader stock universe could be useful for further study, and the data’s adjustment conventions should be checked against independent sources.
Key ideas
- Finnhub provides price, fundamental, and alternative data through a REST API.
- Daily OHLCV responses can be reshaped into a time-indexed data frame for analysis.
- Company fundamentals include current metrics and annual or quarterly historical series.
- The article finds no clear association between one stock’s insider sentiment and next-month returns.
- A small sample and a single ticker limit conclusions from the sentiment test.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.