April 2012
1 post
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The junk science behind the 'Twitter Hedge Fund'
“Twitter Mood Predicts the Stock Market”
In a widely cited study, Johan Bollen, Huina Mao and Xiao-Jun Zeng claim
that
… collective mood states derived from large-scale Twitter feeds are correlated to the value of
the Dow Jones Industrial Average (DJIA) over time. … We find an accuracy of 87.6% in predicting
the daily up and down changes in the closing values...
