Correlations between Google queries and stock market volumes
Financial markets and the 'swarm intelligence' of the internet are linked.
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.
Tobias Preis, Daniel Reith, and H. Eugene Stanley,
"Complex dynamics of our economic life on different scales: insights from search engine query data", Philosophical Transactions of the Royal Society A 368, 5707-5720
Petra Giegerich | idw
The most recent press releases about innovation >>>
Die letzten 5 Focus-News des innovations-reports im Überblick:
In just a few weeks from now, the Chinese space station Tiangong-1 will re-enter the Earth's atmosphere where it will to a large extent burn up. It is possible that some debris will reach the Earth's surface. Tiangong-1 is orbiting the Earth uncontrolled at a speed of approx. 29,000 km/h.Currently the prognosis relating to the time of impact currently lies within a window of several days. The scientists at Fraunhofer FHR have already been monitoring Tiangong-1 for a number of weeks with their TIRA system, one of the most powerful space observation radars in the world, with a view to supporting the German Space Situational Awareness Center and the ESA with their re-entry forecasts.
Following the loss of radio contact with Tiangong-1 in 2016 and due to the low orbital height, it is now inevitable that the Chinese space station will...
Fraunhofer Institute for Organic Electronics, Electron Beam and Plasma Technology FEP, provider of research and development services for OLED lighting solutions, announces the founding of the “OLED Licht Forum” and presents latest OLED design and lighting solutions during light+building, from March 18th – 23rd, 2018 in Frankfurt a.M./Germany, at booth no. F91 in Hall 4.0.
They are united in their passion for OLED (organic light emitting diodes) lighting with all of its unique facets and application possibilities. Thus experts in...
Oceans formed before Tharsis and evolved together, shaping climate history of Mars
A new scenario seeking to explain how Mars' putative oceans came and went over the last 4 billion years implies that the oceans formed several hundred million...
For the first time, an interdisciplinary team from the University of Basel has succeeded in integrating artificial organelles into the cells of live zebrafish embryos. This innovative approach using artificial organelles as cellular implants offers new potential in treating a range of diseases, as the authors report in an article published in Nature Communications.
In the cells of higher organisms, organelles such as the nucleus or mitochondria perform a range of complex functions necessary for life. In the networks of...
Researchers from Göttingen University discover additional function of opsins
Animal photoreceptors capture light with photopigments. Researchers from the University of Göttingen have now discovered that these photopigments fulfill an...