Twitter Sentiment Analysis Applied to Finance: A Case Study in the Retail Industry

Abstract

This paper presents a financial analysis over Twitter sentiment analytics extracted from listed retail brands. We investigate whether there is statistically-significant information between the Twitter sentiment and volume, and stock returns and volatility. Traditional newswires are also considered as a proxy for the market sentiment for comparative purpose. The results suggest that social media is indeed a valuable source in the analysis of the financial dynamics in the retail sector even when compared to mainstream news such as the Wall Street Journal and Dow Jones Newswires.

Sentiment-Driven Exchange Rate Forecasting: Integrating Twitter Analysis with Economic Indicators

“…Souza et al (2015) revealed that Twitter sentiment can exert a significant impact on stock returns and volatility in the retail sector, surpassing the predictive power of traditional news sources. Building on this, Jangid et al (2018) took a step forward by developing a deep learning model for aspect-based sentiment analysis in the financial domain, achieving remarkable accuracy.…”