Date post: | 13-May-2015 |
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Economy & Finance |
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Social Sentiment & Stock Markets The canary in the coalmine
Research In Motion Case Study
Testing the correlation between Public Sentiment on Twitter and Stock Price
Social Media Content Analysis Dow Jones 2012-01-17 (15 minute time frame)
DataSift provides funds with new data and insights to drive trading decisions Sentiment and Semantic analysis can be used to identify real-time trends and swings in sentiment towards stocks, industries and news. Example correlation between negative spike in sentiment and price decline for DJI index-price on 17-Jan-2012
Case in Point: Research-In-Motion (Blackberry)
Mentions of RIM surge on Twitter Sentiment of Tweets mostly pessimistic Spike in negative sentiment
RIM Social Media Content (1 hour time frame)
Announcement of
Resignation
Jan 21 - RIM’s co-CEOs announce resignation
Which countries did the Tweets come from?
A Global Topic of Conversation
Canada 30%
USA 30%
UK 20%
APAC 10%
RIM Social Media Content (15 minute time frame)
Markets Open – as expected, RIM Tumbles
① Surprising spike of positive sentiment at beginning of trading hours (14:30 UCT)
② As expected, RIM stock price drops on market-opening
①
②
Stock price declines for 20 mins, but social sentiment turns-around – 5 minutes later, stock reaches support level
1. As expected Stock Declines
2. Sentiment Inflection Point Sentiment on Twitter switches to positive value around 14:45(09:45 ECT), despite price still falling.
5 min latter the stock price reaches the support level at 15.88.
3. Support Level Tested This level is tested again after 15:20 and holds, as the sentiment of social media content remain positive.
② Sentiment Inflection
Point
③ Support Level Tested
① Stock declines
Geographic location
Author's social influence�(Klout score)
Number of followers
Language
Timezone
Social media platform
Gender
and up to 160 other categories...
To help make sense from social data, DataSift can aggregate data by:
DataSift – a powerful platform for creating insights from social media
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RIM Social Media Content (Klout Score above 40)
Social Influencers were good canaries
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