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October 3, 2011

Various New TweetTrader Features for Better Information and a Better User Experience

As you may have noticed, there is a new button on

Sign in with Twitter. Yes, you are right, it is now possible to log in with your Twitter account to customize your TweetTrader experience.

You now can:
Follow other users to build your own social network
Create your own dashboard
Create a portfolio of favorite stocks you are tracking
Manage your profile

With this latest release, you have many more options to filter the information stream of TweetTrader: you can specifically read the messages of users you follow, or only messages that discuss stocks from your portfolio.

Personal Livestream

Your portfolio received its own aggregated sentiment view, and shows sentiment change and price prediction in one, single view.

Portfolio Overview

In the dashboard, right after logging, we show you tops and flops: your portfolio stocks that showed the largest sentiment change.

Tops and Flows

To make it easier to identify users you might be interested in following, every user tweeting stock related messages automatically receives a profile that shows key user information, which stocks the user is tweeting about, whether the user's message are more bullish or more bearish compared to the overall average as well as the user's prediction accuracy.

User profile

Please let us know what you think about the changes ... and please keep spreading the word!

August 29, 2011

Dr. Stock Microblogging

The TUM School of Management has awarded one of the first phd titles worldwide for research on Twitter. Timm Sprenger's dissertation on "The Information Content of Microblogs and their Use as an Indicator of Real-World Events" investigates whether information extracted from Twitter can serve as an indicator of real-world events and explores the mechanism that explains the efficient aggregation of information. 
The results illustrate that the sentiment (i.e., bullishness) of stock-related tweets is correlated with abnormal stock returns. In addition, they provide empirical evidence supporting the idea that followership relationships and retweets represent the Twittersphere's "currency" for weighing information, since users providing above average investment advice are retweeted (i.e., quoted) more often and have more followers. Thus, this dissertation contributes to the understanding and use of social media content in social science research.

July 20, 2011

International Conference on Weblogs & Social Media presented its website as a demo at the International Conference on Weblogs and Social Media (ICWSM 2011) in Barcelona, Spain. The associated demo paper is available online as part of the conference proceedings. On this occasion, we also met with a "Who is Who" of the Twitter research community including Johan Bollen from Indiana University (author of "Twitter mood predicts the stock market"). Despite an intense conference program, there was time for a little bit of sightseeing to find that the Sagrada Family has a lot in common with our platform - it's beautiful, but still under construction...

June 16, 2011 featured on Reuters Insider TV was recently featured on Reuters Insider, a new TV experience from Reuters and 150+ trusted content partners and targeted specifically at financial professionals.

You can watch the interview and related broadcasts featuring here.

May 2, 2011

TweetTrader on Air was recently featured in a radio report on the German network of Bayerischer Rundfunk. You can listen to it here.

April 27, 2011

Worldwide press coverage

A press release has recently generated quite some buzz in the international press.

Twitter predicts future of stocks  
Twitter may not yet have found a way to make money for itself but it is doing a good job of generating cash for its users, research suggests. Read more.

Twitter predicts performance of individual stocks
The information in tweets captured market movements fairly quickly and strong buy signals on Twitter are followed by abnormal returns from that stock the following day. Read more.

All Atwitter With Investment Tips
Just how valuable is a tweet? Some people believe that by harnessing and analyzing the flow from all tweets, they will be able to predict future stock prices. That would be valuable indeed. A graduate student at the Technische Universit√§t M√ľnchen, has launched, a Website that uses tweets to size up market sentiment on particular stocks. Read more.

The link between tweets and stock market
Wealth-management companies take note: A team in Germany has found that investors following stock-market tweets showed average returns of 15 per cent. And now this crowd knowledge can be tapped by any investor with a Twitter account. Read more.

Twitter Now a Source for Bernie Madoff-ish Investment Returns
Following Twitter is almost as good as taking dedicated analysts' advice when it comes to earning profits. Read more. 

Twitter predicts performance of individual stocks
Now economists at the Technical University of Munich (TUM) have launched a website that predicts individual stock trends based on Twitter chatter. Read more.

Twitter analysis predicts stock prices a day ahead
Playing the stock market just got a little easier, thanks to economists at the Technical University of Munich (TUM) who have developed a website that predicts individual stock trends. Read more.

Who needs a broker? Twitter comment analysis predicts great investments
German economists who used machine intelligence to analyze tweets about stocks say the advice shared among Twitter members can accurately predicts what the market will do a day ahead of time. Read more.  

Next to these examples, coverage included countries around the world including Germany, Switzerland, Austria, Belgium, The Netherlands, Italy, Spain, Hungary, Romania, Bulgaria, Vietnam, Argentina, Chile, and many more.

March 15, 2011

Followers and Foes: Defining Industry Groups with Twitter

Delineating industry groups of related firms and identifying strategic peers is important for both financial practitioners and scholars. We have explored the relationship of S&P 500 stocks in terms of joint mentions in stock microblogs (for example, the tweet “Big banks up or down with Bernanke's re-nomination? $C $BAC" jointly mentions Citigroup and Bank of America and thus associates these companies with each other). The figure below shows the relationship of S&P 500 stocks in terms of joint mentions in 439,960 English-language, stock-related microblogging messages. For a rough comparison with the classic SIC industry classification, the shape and color of each stock symbol represents the one-digit SIC industry group. We can interpret proximity of a group of stocks roughly as the degree to which they are related.

We find that many subgroups of stocks are consistent with our intuition of classic industry delineations. Financial firms, such as Goldman Sachs (GS), JP Morgen (JPM), and Bank of America (BAC) are closely interconnected. There are also tight-knit smaller groups of stocks, such as the media companies Disney (DIS), CBS Broadcasting (CBS) and Time Warner (TWX). In addition, some subgroups exist that are not connected to the rest of the network, for example the insurance companies WellPoint (WLP) and United Health (UNH), the logistics firms United Parcel Service (UPS) and Fedex (FDX), and the hardware stores Home Depot (HD) and Lowe’s (LOW). Their isolated position suggests that these companies form micro industries that are often subject to the same news items, but not frequently associated with other firms.
The network graph not only confirms classical industry groupings, but also reveals interesting connections between these industries. For example, while Exxon Mobile (XOM) is obviously closely related to other major energy firms such as Chevron (CVX) and ConocoPhillips (COP), it is also linked to subcontractors such as the exploration firms Anadarko Petroleum (APC) and Halliburton (HAL), which in turn are associated with their equipment suppliers Schlumberger (SLB) and Cameron (CAM). Note that these relationships cut across traditional SIC categories. Online retailer Amazon (AMZN) is another interesting example in this respect, because the company appears to be a hub that is associated with traditional “brick and mortar” retailers, such as Walmart (WMT), Target (TGT) and Costco (COST), online retailers, such as Priceline (PCLN) and Ebay (EBAY), computer soft- and hardware firms, such as Apple (AAPL), Microsoft (MSFT) and Intel (INTC), and communication providers, such as AT&T (T). The network also highlights particularly competitive relationships, such as those between Coke (KO) and Pepsi (PEP) or Visa (V) and Mastercard (MA), as well as issues related to corporate control and ownership, such as the strong link between Disney (DIS) and its parent company General Electric (GE).
We conclude, that joint mentions of stocks on Twitter offers unique and rich insights into the relationship between companies.

The size of the stock symbol represents the total number of mentions, the thickness of the lines is indicative of the relative frequency of joint mentions (i.e. relatedness of two stocks). For better readability the figure was limited to stocks that were mentioned together at least 50 times.