What s the result’
With the s-score is a numerical value that encapsulates how consumers and investors feel about the company, stock, etf, sector or index, as expressed in social networks. -Scores are generated from data collected by monitoring social media systems to help investors to make trades and to help companies with market analysis and decision-making.
In 2013, the forecasts of the technologies and social market Analytics created the first s, the result must be distributed over high-performance global network specifically focused on the financial sector and in the interests of the trading firms, portfolio managers, hedge funds, risk managers and brokers. Along with his trademark from-the result, SMA offers s-Medium, s-Delta, s-volatility, s-buzz and s-dispersion indices (collectively called s-factors), track volume, modify and distribute social media comments. Their system filters out unnecessary and duplicate comments and spam to focus on the 10% of observations that contain important information.
Processing engine the AGR consists of three components: extractor, analyzer, and calculator. According to SMI, a program accesses an API of web services of Twitter and microblogging aggregator GNIP data. These sources are queried to find the comment (Twitter) on the AGR-covered stocks. This process occurs continuously. In the evaluation stage, each tweet is analyzed for the relevance of the financial market using proprietary algorithms. Characteristics of the person who made the tweet also analyzed to determine intent. Finally, the stage calculator determines the “mood signature” to each of SMA-coated stock using segmentation and weighting process based on time. Then “the process of normalization and scored” expects with the result.
-The result is more than +2 was associated with a significant positive mood, while the s-score less than -2 is associated with significant negative sentiment. And the result is greater than +3 is extremely positive, and below -3 is very negative. Anything between -1 and +1 is considered neutral. Higher rates may also be associated with higher Sharpe ratios, while lower values may be associated with lower Sharpe ratios.
-The result: how it is used
Investors can use the s-Scores to help them pick stocks. When the s-score changes, stock price, expected to change as well. Studies of social market analysis showed that stocks with s-Scores higher than +2 significantly outperformed the S&P 500 index for the period from December 2011 to December 2013, while those with scores less than -2 are much worse. As of January 2014, SMA, calculated assessment for all US stocks with a significant amount of data social media. Examples include whole foods, Tesla motors, Apple and lululemon.