Investor sentiment on the stock market can be used as an indicator of market direction. Natural Language Processing is the field of Machine Learning able to make computer systems understand human language. Stock Badger uses Natural Language Processing to gauge how people feel about the energy sector.
Why is market sentiment and current news valuable? The article “Financial News Predicts Stock Market Volatility Better Than Close Price” in The Journal of Finance and Data Science (June 2018) by authors Adam Atkins, Mahesan Niranjan, Enrico Gerding explains why. In the article, they say “empirical results show that the average directional prediction accuracy for volatility, on arrival of new information, is 56%, while that of the asset close price is no better than random at 49%.”
Stock Badger processes and analyzes 100 current energy sector Tweets to determine if the sentiment is Bearish, Neutral or Bullish. The breakdown of the sentiment scores are displayed for easy reference.
Risk profiles are displayed for the top publicly traded energy companies. Note prices are NOT updated in real-time.
Disclaimer: All data provided on Stock Badger is provided for informational purposes only, and is not intended for trading or investing purposes. Stock Badger provides all information as is.