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Showing posts from April, 2020

Newsdai model

Can news trending foreshadow market impact and returns? TL;DR: I developed a simple model of finding and measuring rate of propagation of financial memes in news. I also tested correlation between number of news trending up with a stock return momentum continuing, especially if it's a negative return. I called this model - Newsd.ai! Scenario Here is a practical example, during and in the immediate aftermath of sudden market moves, we need to distinguish between the following scenarios resulting from breaking news coming about the company or instrument: price move is instant and atomic, leaving no time to react price move becomes a trend, as story keeps developing Newsdai model breaks stories into 2 groups. Most of the stories are restatement of the event post-factum or trivial statement of facts that nonetheless leads to a singular "atomic" price move that creates a jump in return. This category leaves no time to form an actionable strategy or trade. If the event happen a