In the Red(dit): Social Media and Stock Prices
–arXiv.org Artificial Intelligence
I spent most of the summer sifting through topics, including patents, blood diamonds and police brutality. None of them really stuck. However, on September 16, 2021 I sent Dr. White this email: " In a shocking turn of events, I have found another thing I would like to research. I would like to see if Twitter "coverage" of a publicly traded stock or related phrase ("google" and "search engine") can predict the daily returns of the stock, or changes in the highs/lows/volume of trades. The theory here being that investors' valuation of a stock may be reinforced or informed based on their perception of how others think about the companies (sort of like herd behavior) or their familiarity with the firm in general. If there is an effect, I would particularly like to examine whether this effect has gotten stronger during corona times, as many journalists are claiming that now that everyone is sitting at home with their commission-free trading apps like RobinHood, there are tons of amateur investors in the scene, who may be prone to "window shopping" for hot stocks that make the news.
arXiv.org Artificial Intelligence
Nov-14-2023
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