The Wiley Finance Series : Handbook of News Analytics in Finance

(Chris Devlin) #1

so users benefit from accessing data produced by the most time-tested sentiment
analysis system.
e. Receive Media Sentiment alerts at your desktop or on the go, on a smartphone or any
other mobile device Browser-based and email systems deliver the data in real time
to maximize exposure and increase the number of opportunities received.
f. Receive entry and exit price point estimates Media Sentiment Limits delivers two
sets of stock price limits that indicate, with statistical significance, the intervals that
a particular stock price might move. For instance, internal research shows that even
when the stock moves in the opposite direction, over 80% of the alerts reach the
higher stock price limit after they reached the lower price limit, as estimated by the
system. This feature alone may help users to profit from significant stock price
movements, no matter what direction the stock price moves.
g. Receive real-time visual alerts when stock price limits are reached along with potential
profit and loss calculations This feature puts more control in the hands of the user
as he or she ponders on the decision to act.


As mentioned above, the main goal of Media Sentiment is to improve user accuracy by a
significant margin, when he or she is in the process of determining whether a particular
earnings news release delivers either a positive or a negative sentiment from the senior
management of a publicly traded company.
Also, by having access to rapid sentiment analysis of a news release by a publicly
traded company, Media Sentiment helps to reduce the risks involving regulation FD
exposure and legal interpretations.
No other news sentiment analysis system has delivered accurate alerts regarding stock
tickers of publicly traded companies for as long and well as Media Sentiment has.


4.19 Media sentiment in action


The Media Sentiment system delivers three types of alerts that are displayed real-time
online within an active browser window in the following combinations of thumbs-up or
thumbs-down symbols:


Figure 4.1.The three components of the Media Sentiment system.


Thumbs-up signals indicate a positive media sentiment while thumbs-down signals
indicate a negative media sentiment.
Most of the public companies that trade on NASDAQ and NYSE markets in the US
report earnings either before the main market opens, during pre-market trading, or after
the main market closes during after-market trading. Therefore, the main market activity
will be during the same day for companies reporting before the main market opens, or
the following trading day for companies reporting after the main market closes.


Measuring the value of media sentiment: A pragmatic view 121
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