Using Mobile Phone GPS Data to Nowcast Auto Production Activity and Equity Investment Strategy Based on the Activity Nowcasting

In this research, we used the location data (GPS data) of mobile phones to measure changes in the number of people in major manufacturers' autos plants, and based on the data gleaned attempt to monitor the auto production volumes in Japan. As a result, we have come up with approximate estimates that, as well as maintaining a high level of timeliness, were broadly consistent with major automakers' production volumes and Indices of Industrial Production data for motor vehicles. In addition, we proposed a stock investment strategy based on data for the estimated production volumes for each car company and confirmed stable return of the strategy. This result showed that the estimated production volume based on the GPS data is effective information for the stock investment decisions.