Equities
RavenPack | March 14, 2011
This paper shows that an investor evaluating a universe of stocks should be concerned about tracking media coverage and sentiment.
The concept of abnormal news liquidity is introduced and is demonstrated to predict long-term price direction when distinguishing between companies moving in or out of the media spotlight.
Specifically, this paper shows that when companies moving out of the media spotlight are portrayed positively in the news, they tend to outperform the market over the following year.
Likewise, companies that are portrayed negatively tend to significantly underperform the market. For companies moving into the media spotlight, the market tends to either over or underreact to positive and negative news sentiment depending on market conditions.
Please use your business email. If you don't have one, please email us at info@ravenpack.com.
We will process your personal data with the purpose of managing your personal account on RavenPack and offering our services. You can exercise your rights of access, rectification, erasure, restriction of processing, data portability and objection by emailing us at privacy@ravenpack.com. For more information, you can check out our Privacy Policy.
Your request has been recorded and a team member will be in touch soon.
RavenPack is introducing a multidimensional approach to news analytics that captures the evolving complexity of news, enabling traders to build more dynamic and transparent strategies.
New research using RavenPack Job Analytics to quantify tech adoption in hiring posts proves that companies hiring for novel tech skills outperform peers from an investment perspective.
Our multi-asset allocation strategy based on inflation nowcasts and RavenPack sentiment analytics outperforms the S&P 500 and stabilizes volatility. With real Sharpe ratios of up to 1.25 and a risk control approach, it delivers a compelling inflation hedge for investors.