Stock market prediction using Twitter

A recent paper presented at the ACM International Conference on Web Search & Data Mining uses a simulation to show that a trading strategy based on Twitter conversations can outperform the Dow Jones and basic trading strategies. Using twitter and stock market data over a four-month period, the study also finds that the number of distinct twitter conversations about a stock is a strong predictor of stock trading volume. A higher number of distinct conversations is also positively related to higher stock prices while lower number of conversations can predict a lower stock price.

 

The main trading room of the Tokyo Stock Excha...

Image via Wikipedia

 

 

 

While past research has looked the sentiment, positive or negative, of tweets to predict stock price, little research has focused on the volume of tweets and the ways that tweets are linked to other tweets, topics or users. Further, past work has mostly studied the overall stock market indexes, and not individual stocks.

 

A key limitation of the study is that the market lost value during the examined time period. Thus the Twitter based strategy outperformed other strategies by losing the least amount.

 

For the study, the researchers simulated a series of investments between March 1, 2010 and June 30, 2010 and analyzed performance using several investment strategies.

 

Read more here and here. See the paper here.

 

 

 

LinkedIn’s ‘Follow Company’ button

Earlier last month, LinkedIn launched a ‘Follow Company’ button, much on the lines of similar subscription / follow models on Facebook and Google+. This allows companies to add a ‘Follow’ button to their web properties. In the words of LinkedIn, clicking this button will enable companies to engage with existing and potential employees and customers.

 

Whether you are looking to stay up-to-date on company news, career opportunities or industry trends, following companies on LinkedIn is a great and easy way to gain insights and stay connected

 
This feature portends an uptick in adoption of LinkedIn by firms for not just recruitment, but also brand building efforts.

 

 

Get the code for the follow button here and read more here.

Improvements to Google+

In a bid to maintain its high growth rate, Google recently announced a set a new features and updates to Google+.

Image via Google

 

Highlights include the ability to change the volume of updates from a circle, an improved notification bar, increased number of administrators in for Google+ Pages, and improvements to Google+ Photos.

 

Twitter fuels a bank run

Swedish banks operating in Latvia were recently victim to a social media-fueled bank run. Analysis by Orgnet.com shows the social graph of Twitter users who tweeted and retweeted rumors about the bank. The image highlights the Swedbank‘s central role in tweeting denials and trying to control the spread of rumors. One can clearly see two sub-networks at play – the first being a highly connected network of rumor-mongers, the second a highly centralized network of denials.

 

bankrunupdate.png

Image via ReadWriteWeb

 

Download the original pdf here: Twitter Bank Run.

Read more at Did A Twitter-Fueled Latvian Bank Run Start With One Account? [UPDATED].

When stuff tweets

Twitter will soon be awash with tweets by stuff (inanimate objects). Twine, a $99 wifi connected box, uses inputs from environmental sensors and a set of action rules to tweet different messages. Users can set up the action rules online. Thus the day is not far when you will receive a tweet from the toaster that the toast is ready! The box has various inbuilt sensors and allows endless extensions.

The battery-powered box contains sensors for temperature and vibration, a magnetic switch and a moisture sensor. Pretty much anything else can also be added to the contraption. One backer plans to outfit Twine with weight sensors and use it to notify him when the ice machines he operates need refills. Another will use a magnetic door sensor to receive a message when UPS stops by. Others say they will keep track of their pets, heating systems and garage doors using the device.

 

Image via Mashable

 

Read more at Twine: The Revolutionary Box That Can Make Your Appliances Tweet.

What Facebook knows about you

The fact that Facebook keeps a record of all user data does not come as a surprise. Facebook has admitted to this in its ToS as well as through various media releases. However, the implications of this fact – how much data Facebook has on each of its users and what it knows about them – come through only when one can actually ‘see’ the data for oneself.

An Austrian law student, Max Schrems, asked Facebook to send him all the data it had stored about him – he received a CD with 1222 PDF files. The below video visualizes what Facebook knows about him.

Using LinkedIn for personal marketing

Mindflash has released this infographic that provides a checklist of things to do on LinkedIn that can help in increasing the engagement and marketing of your personal online brand. It suggests having a completed, customized, spruced up profile and high engagement in networks and groups. The infographic also highlights a few key stats about LinkedIn such as 77% of its 135 million users are above 25.

 

Infographic: LinkedIn Bootcamp: Basic Training For The Personal Marketer

Image via MindFlash

 

See the original image at Infographic: LinkedIn Bootcamp: Basic Training For The Personal Marketer | Mindflash.

Google Music for Artists

The public launch of Google Music for consumers has been accompanied by a truly disruptive move by Google – Google Music for Artists. This offers artists a means to bypass traditional music publishers and go directly to the consumer. Google will take a one time setup fee of $25 and 30% of sales proceeds. Other key features include the ability to set album and track prices, create an artist page on the Android Market, sell music via Youtube, and close integration with Google+. This move hammers the last nails into the coffins of the purveyors of non-digital music distribution models and shrinking platforms like MySpace.

Image via Google

With Google Music you set your own retail prices for albums and tracks. You can quickly make your own promotions, like limited time price reductions, or make some tracks available as album-only purchases. The choices are yours.

You keep 70% of what you take in, paid to you monthly.

Every artist or band has a page within Android Market to help Google Music users find out more about you. The artist page includes your bio, photo, links and the original music you have available for sale.

Our integration with YouTube helps you sell your songs with a buy link in your music videos.

Motivations for use of social media

A recent survey has found that 66% of American adults use social media. A majority of these (two thirds) use these platforms to keep in touch with family and friends.

Image via Pew Research Center

 

Read more at Why Americans Use Social Media | Pew Internet & American Life Project.

Linking business cards and LinkedIn profiles

LinkedIn has launched an updated CardMunch iPhone app. The app now allows users to scan a business card, add the details to their iPhone’s address book, enrich the information with data from the person’s LinkedIn profile, and take personalized notes.

For the first time, we’ll be connecting the physical world of business cards with the digital world of LinkedIn profiles, and helping millions of professionals everywhere take the world of contacts and phone numbers into the future of professional networking. We’ve also done a major re-haul of the CardMunch experience with particular focus on how we can make outbound professionals more successful and productive.

Image via LinkedIn

Read more at The LinkedIn Blog » Blog Archive LinkedIn’s New CardMunch iPhone App: Reinventing Business Cards «.

 

A link to the app is here.