This is the result of a joint study in which search engine query data are analyzed by Tobias Preis and Daniel Reith (Johannes Gutenberg University Mainz, Germany), together with H. Eugene Stanley (Boston University, USA). "We asked the question whether or not there is a link between search volume data and financial market fluctuations on a weekly time scale", says Preis.
Search engine query data can deliver insight into the behavior of individuals who are submitting several hundred million search engine queries around the day each day. Aggregated query data provided by Google cover the time period from 2004 to present and are available for scientific use.
"Both collective 'swarm intelligence' of internet users and financial market participants can be regarded as a complex system of many interacting subunits that react quickly to external changes", explains Preis.
The authors find clear evidence that weekly transaction volumes of S&P 500 companies are correlated with weekly search volumes of corresponding company names. Thus, increasing transaction volumes coincide with an increasing number of search queries for the corresponding company name. However, stock price variations and changes of company's search volume show no significant correlation. The authors verify this effect for individual stocks as well as for the S&P 500 on an aggregated level. "Thus, search volume data seems to coincide with the attractiveness of trading a stock", says Reith. The authors highlight that their finding can be of crucial importance for a deeper understanding of financial markets' complexity.
The study is published in the latest issue of Philosophical Transactions of the Royal Society A.Reference:
Petra Giegerich | idw
From rocks in Colorado, evidence of a 'chaotic solar system'
23.02.2017 | University of Wisconsin-Madison
Prediction: More gas-giants will be found orbiting Sun-like stars
22.02.2017 | Carnegie Institution for Science
On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.
On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...
In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport
Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...
The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.
The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...
Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...
13.02.2017 | Event News
10.02.2017 | Event News
09.02.2017 | Event News
27.02.2017 | Materials Sciences
27.02.2017 | Interdisciplinary Research
27.02.2017 | Life Sciences