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Why Social Media Matters: The Use of Twitter in Portfolio Strategies

by Francesco Corea
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International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 128 - Number 6
Year of Publication: 2015
Authors: Francesco Corea
10.5120/ijca2015906580

Francesco Corea . Why Social Media Matters: The Use of Twitter in Portfolio Strategies. International Journal of Computer Applications. 128, 6 ( October 2015), 25-30. DOI=10.5120/ijca2015906580

@article{ 10.5120/ijca2015906580,
author = { Francesco Corea },
title = { Why Social Media Matters: The Use of Twitter in Portfolio Strategies },
journal = { International Journal of Computer Applications },
issue_date = { October 2015 },
volume = { 128 },
number = { 6 },
month = { October },
year = { 2015 },
issn = { 0975-8887 },
pages = { 25-30 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume128/number6/22878-2015906580/ },
doi = { 10.5120/ijca2015906580 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T23:20:42.224693+05:30
%A Francesco Corea
%T Why Social Media Matters: The Use of Twitter in Portfolio Strategies
%J International Journal of Computer Applications
%@ 0975-8887
%V 128
%N 6
%P 25-30
%D 2015
%I Foundation of Computer Science (FCS), NY, USA
Abstract

In previous works ([8], [12]), it has already been showed that Twitter and social media in general give an interesting additional predictive power to the models that take them into account. However, the contribution of social media is relatively small on a daily basis, because of the speed and the increasing efficiency of the stock markets. It has been decided then to deal with intraday prices to test whether micro-blogging data may actually be used to implement high-frequency forecasting models. It has been constructed an indicator to earn some insights on the Nasdaq-100’s future movements. Once again, the results are very encouraging: the use of social media data increases the predictive power for general stock market index such as the Nasdaq, and becomes thus an essential building block for any pricing model.

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Index Terms

Computer Science
Information Sciences

Keywords

micro-blogging sentiment analysis forecasting Twitter index.

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