Driving alpha using alternative data: Social Sentiment, Part 1

I just viewed a webinar from Nasdaq which talks about using sentiment analysis to predict price movements in stocks. You can find the webinar here, very interesting subject. The presenter shows that the sentiment in many cases are an early predictor of the price movement. Of course the webinar is also a sales pitch for the new analytics hub that Nasdaq has build which currently consist of nine datasets, one of them are the sentiment data. All the nine datasets are in the group of “alternative data” which is all the new rage in the financial sector.

Read more to get an overview of the key points from the webinar and a few my takes on pitfalls in this area and how to do similar sentiment analysis on you own.

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