The Advantages of Sentiment Analysis of Stock Prices
There are three advantages of capturing stock sentiment analysis. Information and Price Dynamics brings Natural Language Processing (NLP) to financial news and social media. We capture business news headlines and Twitter conversations to gain leverage on events affecting stock prices and investor sentiment. These text features are transformed into indicators that are combined with and improve forecasts of high and low stock prices through machine learning algorithms that result in stock sentiment analysis.
- diverse data feeds can measure both opinion and events,
- cutting edge methods can more efficiently extract textual information from financial news sources
- machine-learning techniques can integrate news/sentiment analysis with forecasts of price volatility.
We extract information using topic modeling, identifying event ensembles within the time-shifting content of the news environment.
We combine variables built from text-based features with price forecasts already shown to outperform “no change” predictions. This supports multi-day price range forecasts valuable for options trading.
The current focus of this research is on the market space encompassing nine (9) companies developing vaccines and anti-viral drugs for the COVID-19 virus.
- Emergent BioSolutions Inc. (EBS)
- Gilead Sciences, Inc. (GILD)
- Heat Biologics, Inc. (HTBX)
- Inovio Pharmaceuticals, Inc. (INO)
- Moderna, Inc. (MRNA)
- Novavax, Inc. (NVAX)
- Regeneron Pharmaceuticals Inc
- Takeda Pharmaceutical Company Limited (TAK)
- Vir Biotechnology, Inc. (VIR)