Comments
What’s Next in News Analytics: Not Social, Not Yet
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Blog Voyage
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Blog Voyage,
User Rank: Apprentice
7/7/2015 | 6:02:26 AM
Re: long wait
Absolutely right. Such a difficult social media to analyze and understand. So noisy.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/23/2014 | 8:33:10 PM
Re: long wait
Twitter is kind of difficult to handle somtimes for getting specific inisghts. There's so much noise. Like you mention in the article, anybody can post false info, so getting to the valuable nuggets of info is kind of difficult.
Becca L
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Becca L,
User Rank: Author
10/29/2014 | 5:44:57 PM
Re: long wait
It's true that some firms are adding in sentiment from Twitter, but from all I understand the data isn't just taken with a grain of salt, it's more like the whole shaker. If you want to use sentiment data as a trusted factor in investing, better to leave it out.

That being said, Twitter can be very useful. InformationWeek just reported Twitter data will be made available through IBM's cloud for enterprises to run analystics against to use in apps and support decision making. "As an example, social data can accelerate product development efforts by predicting long-term trends or it can improve demand forecasting by providing real-time insight into weather patterns, IBM said." - this is much different than short term investing strategies.
fstechexec
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fstechexec,
User Rank: Moderator
10/28/2014 | 12:30:14 PM
long wait
I would have thought that a twitter-based strategy would work by now. It's been 3 years or so since we first heard of using social data for market insights. I guess the insights aren't that accurate so far, or there would be plenty of funds running social//twitter strategies. 
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
10/28/2014 | 12:15:10 PM
Re: Twitter investment strategy?
Oh, here is the source article for the Twitter hedge fund:

Twitter-fueled hedge fund bit the dust, but it actually worked

 
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
10/28/2014 | 11:44:22 AM
Twitter investment strategy?
The industry has been talking about using twitter to find investment ideas for years. Back in 2012, a twitter-based hedge fund lasted about a month and produced returns of about 2% (which doesn't sound good, but the returns for the overall market were actually negative for that same month)....so the twitter HF did outperform the market (in a very short sampling).


But no one has been able to figure out the secret to bring in social data to run an investment strategy for the long haul. It will happen eventually, but as Gonzalez says, there has to be a way to verify the 'news' on Twitter to make sure it is legitimate.


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