Monday, October 18, 2010

Physics and Stocks?

So some physicists decided to try and predict the stock market movements and they found that they could predict with 80% confidence the movement of the Dow with...

Twitter?

Apparently the "calmness" of Twitter had the highest correlation. However, they had no explanation, just a correlation, so I'm not ready to start investing based on Twitter. But, this could be a new way to look at investor sentiment.

If you want to read a more thorough analysis of the paper, check out http://www.technologyreview.com/blog/arxiv/25900/?ref=rss

1 comment:

  1. That's officially... bizarre. I'll give it a good read when I get the chance.

    ReplyDelete