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The Handbook of News Analytics in Finance
book

The Handbook of News Analytics in Finance

by Gautam Mitra, Leela Mitra
May 2011
Beginner to intermediate
384 pages
12h 28m
English
Wiley
Content preview from The Handbook of News Analytics in Finance

4.18 THE VALUE OF MEDIA SENTIMENT

Media Sentiment® has developed a technology that can make a rapid assessment of the sentiment expressed by management in an earnings news release. The system correlates that information with estimates from Wall Street analysts and the overbought/oversold signals of the trading market, which allows profitable trading opportunities to be discovered. Media Sentiment LimitsTM provides suggestions for stock price entry points along with conservative and aggressive stop limits.

What is the value that Media Sentiment brings to traders and investors?

To answer this critical question, one would need to understand how much the Media Sentiment system improves the accuracy and efficiency of one's own reading and determination of the sentiment and impact of an earnings news release. As is the case with medicine, users' benefit levels may vary from person to person.

For instance, if one user can increase his/her accuracy by 10% and if the user can convert that accuracy into dollars that would be the equivalent of a value add of 10 cents for each dollar invested or traded.

Users' expectations should be such that Media Sentiment alerts will help to improve their accuracy and speed in determining the sentiment and impact of a higher number of earnings news releases.

Even an incremental improvement will allow users to benefit from potential profits that result from an increased number of opportunities.

The value that Media Sentiment brings to the end-user comes ...

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Publisher Resources

ISBN: 9780470666791Purchase book