The following is an excerpt from Dr. John Bates’ recent commentary on Huffington Post, which discusses Twitter’s ability to predict financial market sentiment.
Another firm has jumped on the Twitter sentiment bandwagon; Topsy Labs is planning to release a Twitter trading tool to investors later this year. Topsy follows U.K. hedge fund Derwent Capital, which launched a fund last year using a Twitter algo that claims to predict market direction three or four days in advance with nearly 88% accuracy. And U.S. firm Wall Street Birds, which offers a free service for investors to use to make investment decisions based on the analysis of social media data. (It has become so popular that to sign up you must get invited by an existing user.)
But are emotionally laden Twitter messages able to provide reliable bellwethers for market sentiment? As I said in an interview with Advanced Trading in April, I think you can use a Twitter algo to get a sentiment reading on particular topics, but by the time you've got the information it is more of a trailing indicator rather than a leading indicator.
Read the full post from Dr. Bates here.
View all posts from The Progress Team on the Progress blog. Connect with us about all things application development and deployment, data integration and digital business.
Subscribe to get all the news, info and tutorials you need to build better business apps and sites
You have the right to request deletion of your Personal Information at any time.
You can also ask us not to pass your Personal Information to third parties here: Do Not Sell My Info
We see that you have already chosen to receive marketing materials from us. If you wish to change this at any time you may do so by clicking here.
Thank you for your continued interest in Progress. Based on either your previous activity on our websites or our ongoing relationship, we will keep you updated on our products, solutions, services, company news and events. If you decide that you want to be removed from our mailing lists at any time, you can change your contact preferences by clicking here.
Let our experts teach you how to use Sitefinity's best-in-class features to deliver compelling digital experiences.Learn More