"..research by Johan Bollen, an associate professor in the School of Informatics and Computing at IU, supports speculation that these components could be related.Here is a video interview with the author from Bloomberg (can not embed).
Bollen conducted an empirical study of more than 10 million Twitter posts — tweets — during 10 months in 2008.
His findings revealed a startling correlation between aggregate mood expressed on Twitter and the Dow Jones Industrial Average.
The predictions are nearly 90 percent accurate up to a week in advance of the Dow’s close.
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Friday, October 29, 2010
Twitter (mood) as a predictor of the Dow
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I think this is either a classic case of confusing correlation with causation, or just data mining. I posted a critique of their paper on my blog here.
http://financeclippings.blogspot.com/2010/10/twitter-predicting-stock-market-i-doubt.html
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