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StockTwits classified sentiment and stock returns

Marc-Aurèle Divernois, Damir FilipovićFinTech区块链与去中心化金融Top Field
Digital Finance2023-12-29École Polytechnique Fédérale de Lausanne; Swiss Finance InstituteDOI
Citations5

Abstract We classify the sentiment of a large sample of StockTwits messages as bullish, bearish or neutral, and create a stock-aggregate daily sentiment polarity measure. Polarity is positively associated with contemporaneous stock returns. On average, polarity is not able to predict next-day stock returns. But when we condition on specific events, defined as sudden peaks of message volume, polarity has predictive power on abnormal returns. Polarity-sorted portfolios illustrate the economic relevance of our sentiment measure.

Polarity (international relations)Stock (firearms)EconometricsPredictive powerEconomicsChemistryGeographyPhysicsFinancial Markets and Investment StrategiesStock Market Forecasting MethodsSentiment Analysis and Opinion Mining