Summary of News versus Sentiment

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

News versus Sentiment summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

10 Innovation

6 Style

Recommendation

Algorithms have been buying and selling stocks for some time now, and in the past few years, as many media outlets look for cost savings, algorithms have also begun writing news stories. So the time may be right for artificial intelligence to take over the management of investments, sending the multitrillion-dollar investment industry into a paradigm shift. An intriguing new paper from economists Steven L. Heston and Nitish R. Sinha demonstrates that artificial intelligence and algorithms can successfully make share price predictions using news stories. getAbstract recommends this thought-provoking but highly technical description of novel research on news sentiment analysis and stock prices.

In this summary, you will learn

  • How news can predict future stock price movements,
  • Why no news is not necessarily good news, and
  • Whether positive and negative news are equally effective at moving prices.
 

About the Authors

Steven L. Heston is a professor of finance at the University of Maryland. Nitish R. Sinha is an economist at the Board of Governors of the Federal Reserve System.

 

Summary

Artificial intelligence and textual analysis now play important roles in finance and markets. While academic research has lagged behind commercial applications, a growing body of work shows that “neural networks” – systems that can assess the interactions of various functions, much as a biological central...

Get the key points from this report in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

Customers who read this summary also read

More by category