Proposal yuzhou xin

Sentiment in Blogging Community and Wall Street

Team Members

Yuzhou Xin

Introduction

Our emotions affect our actions. In this project, I would like to apply sentiment analysis techniques to study the general emotional state of LiveJournal,a virtual community, and use the result as a predictor for the financial market. Specifically, I would like to see if the anxiety of the community can be a good predictor for volatility in the US equity market. Also, can we extend the result to global markets. For example, can the anxiety in U.S. community affect markets in Europe or Asia. This will be an extension of the research done by Eric Gilbert and Karrie Karahalios.

Dataset

In the beginning, I'll reuse the JiveJournal dataset gathered by Gilbert. Gilbert's data [1] Livejournal's website [2]

Proposed Work

We need to first build anxiety indicators/index for the LiveJournal community using sentiment analysis techniques. Then we need to apply a learning algorithm to the indicators so that we can use them to predict market volatility. In the end, we want to check their predictive powers on US/Global market. If possible, we would like to use data from another community to see if it still supports our hypothesis.

References

Widespread Worry and the Stock Market by Eric Gilbert and Karrie Karahalios[3]