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Alternative Data: Updates of Social Media-Based Signals

Review and Update of Social Media-Based Sentiment Signals

In previous research, we introduced a proprietary database of comments from the WallStreetBets sub-reddit. We used this database in two ways: to identify stocks that were seeing an uptick in mentions, and to build a proxy for sentiment around the overall market. We found that stocks seeing an uptick in mentions, coupled with an increase in trading activity, tended to underperform going forward[1]; we called this group of stocks the Reddit ...

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