Academic research links: social data and financial markets

…A recent important discovery is that search engine traffic (i.e., the number of requests submitted by users to search engines on the [Internet]) can be used to track and, in some cases, to anticipate the dynamics of social phenomena. Successful examples include unemployment levels, car and home sales, and epidemics spreading. Few recent works applied this approach to stock prices and market sentiment…

…We suggest that massive new data sources resulting from human interaction with the Internet may offer a new perspective on the behavior of market participants in periods of large market movements. By analyzing changes in Google query volumes for search terms related to finance…

…[financial analysts] may anchor off one another, exhibit herding behavior, or cluster around the Wall Street consensus, we have developed a new featured [sic] called Notable Estimates. These estimates are significantly different from the crowd, made by contributors with strong track records for accuracy and other factors. We’ve found that these estimates correctly predict…

…data from search engines such as Google provide an accurate but simple way to predict future business activities. Applying our methodology to predict housing market trends, we find that a housing search index is strongly predictive of future housing market sales and prices…

…we develop a simple, direct, and unambiguous indicator of online investor sentiment, which is extracted from Twitter updates and Google search queries. We examine the predictive power of this new investor Bullishness indicator on international stock markets. Our results indicate several striking…

…we investigate whether data generated through Internet usage contain traces of attempts to gather information before trading decisions were taken. We present evidence in line with the intriguing suggestion that data on changes in how often financially related Wikipedia pages were viewed may have contained early signs…

Lead image licensed under CC BY-SA 3.0 from Calvinius 

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