News is an event; news and microblogs by market participants (investors, dealers, brokers and market makers) make up the ‘market sentiment’. The collective sentiment influences and moves the market. In recent years, there has been an increasing interest in sentiment analysis and an accelerated growth in research about the influence of social media on the market sentiment. In order to automate the extraction of sentiment from news, economic announcements, and digital media sources, the research in textual analysis has grown commensurately. Today ‘finance industry’ is experiencing a boom of studies in this domain; the ultimate goal is to find the magic formula for traders and fund managers to make informed and superior trading and investment decisions.
In this handbook the editors discuss how sentiment analysis could be applied to the financial markets. The latest edition of the handbook covers several topics such as:
- News Wires
- Macro-economic Announcements
- Social Media
- Online (search) Information e.g. Google Trends
The implications of sentiment analysis are considered for multiple asset classes including:
- Fixed Income Instruments
- Foreign Exchange
- Commodities (Oil, Gas, Energy and others)
- Green Commodities
Separate chapters are dedicated to the use of sentiment analysis in trading and to specific case studies which show what results could be achieved with the help of sentiment analytics. Please follow the link to learn more about the handbook.