Monday, April 29, 2013

Google Trends as an Investment Research/Trading Tool

An interesting paper. I can't say I used Google trends for individual investment, but I have noticed some correlation in trends results for 'inflation' inflation expectations.

The paper, “Quantifying Trading Behavior in Financial Markets Using Google Trends,” co-authored by Tobias Preis, associate professor of behavioral science and finance at Warwick Business School; Helen Susannah Moat, a research associate at University College London; and H. Eugene Stanley, a physics professor at Boston University, analyzes volumes of queries related to 98 Google search terms between 2004 and 2011, and how those correlate with market performance.


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