Benzinga recently had the chance to speak with two presenters at this week’s Sentiment Analysis Symposium in New York to get a preview of what attendees can expect.
Bloomberg software engineer Vika Abrecht and Social Market Analytics CEO Joe Gits discussed the expanding use of social media sentiment to predict and understand market movement.
How Useful Is Social Media Sentiment?
When asked exactly what a trader can gain from monitoring social media, Gits explained that social media is the best way the average person can gage the feel of the trading pits. Often times, the speed at which information spreads on Twitter Inc TWTR 2.49% or Facebook Inc FB 2.44% can be a huge advantage for observant traders.
“For mid and smaller cap stocks, many times social media signals are reacting before the media has picked up a story,” Gits said. Social Market Analytics can use social media sentiment data to predict stocks that are going to outperform or underperform at a statistically significant rate.
What Is The Best Way To Monitor Social Media Sentiment?
For traders that have never used social media sentiment in their trading strategies before, Abrecht told Benzinga that Bloomberg is…
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