By mining Google search terms over a span of eight years, researchers of Warwick Business School, University College London and Boston University say that early signs of stock market fluctuation can be predicted to buy or sell stocks. They analyzed Google search by users of financial terms and an investment strategy was developed. These search terms were analyzed on a weekly basis and buying or selling of shares was done accordingly. They would open up a hypothetical short position if the volume of search terms went up in the a week and sell it the next week. They bought it if there was a decrease in volume of the search terms considered. This strategy yielded a return of 326 percent return which is almost twenty times more than that of the conventional strategy. With this strategy, stock market trends can be predicted and it might give a whole new level of experience for potential investors and for people playing with numbers.
No comments:
Post a Comment