Can Twitter Predict Stock Prices? [Headlines]
Does chatter on the social network accurately predict fluctuations in the market?
A team of computer scientists has found that Twitter chatter can be used to predict stock prices, even though their study was not looking to do that. Researchers at the University of California, Riverside, first defined a variable they called connected components, meaning “the number of distinct conversational threads taking place around a company in any given day.” Three possible threads around Apple, for example, could be the iPad, iPhone and the Foxconn factory. The more connected components, “the higher the volume of trading for that stock in subsequent days.” Big Think