Continue reading...Twitter Inc, a website and mobile platform where individuals post a 140 (and soon to be 280) character thought, or “tweet”, represents one of the newer social media resources out there. It was only a matter of time before individuals started to use it to develop stock and market trading strategies and they may be on to something.
A 2012 study by researchers at UC Riverside and Yahoo! Research Barcelona concluded that analyzing tweets about the share prices of underlying companies could improve stock trading strategies. The study, entitled “Correlating Financial Time Series with Micro-Blogging Activity” considered Twitter the foremost micro-blogging authority and created sets of filters to analyze tweets about companies and whether this helped improve trading returns.
A measure of tweeting activity looked at total tweet volume, hashtags about specific firms or subjects, as well as using a dollar sign and ticker symbol, which denotes an individual stock on Twitter. The general...
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