PhDs Find Alpha by Systematically Tracking Jets to Predict Mergers and Acquisitions

Colleagues from the Department of Computer Science of University of Oxford and Armasuisse -- which is similar to the DARPA program in the United States-- crunched the numbers and proved the existence of alpha by systematically tracking jets.

This is a small sample size, but it is still telling and it provides a great initial blueprint for quants who  enjoy making money.  and when paired with the other data that JetTrack has, we expect that the numbers can get much higher.  Plus, when paired with data from JetTrack, we expect that the approach used by these researchers can be much more profitable..

See the full research report below.


Overall, the evaluation shows that buyers of stock-listed companies with corporate aircraft indeed use them to fly to the corporate HQs of potential merger targets before the official announcement.

Secondly, the most likely period to visit is 1-2 months prior to the announcement; in two cases even on the day before.

As Table 6 shows, the mean combined share price change of all involved listed companies on the day of the announcement was 7.9%...
— The Real First Class? Inferring Confidential Corporate Mergers and Government Relations from Air Traffic Communication