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Twitter Tweets measures stock market

Its known well, Twitter one of the popular Social Networking and microblogging service that propels all the Websites and Blogs which tweets in it. In very short span of time it reached such heights that its hard to head the news or news head lines around the world with out the spell Twitter.

In the sequences of news all about Twitter and here now its heads with the headline "How Twitter users are feeling can predict the stock market three days in advance"



Twitter Stock Market Graph


Graph 1.Blue - Dow Jones Industrial Average values
2. Red - tweets identified with a 'calm' mood

A new study, computer scientist in the US has discovered the general mood among Twitter users can predict the rise and fall of
the stock market almost a week in advance, the correlation between the Dow Jones and the collective public mood was almost 90% accurate.

Research:From analysis, more than 9.8 million tweets from 2.7 million users during 10 months in 2008. The remarkable discovery came after researchers at Indiana University.

Tweets in Twitter was picked by the team, that describes the feeling of users who tweets and these descriptions divided into six categories of emotion:
•    Calm
•    Alert
•    Sure
•    Vital
•    Kind
•    Happy

OpinionFinder, an online mood-tracking tool was used to measure whether the users were generally positive or negative and how that changed over time.

From the measures of variations in public mood, the team compares them to closing stock market values.
The researchers then correlated the 2 sets of values:-
1.    Dow Jones
2.    Public mood
used it to test a hypothesis that predicting stock market closing values could be improved by including public mood measurements.

What they discovered was that one particular emotion, calmness, correlated with how the Dow Jons reacted. The team is not sure why calmness should correlate so closely with stock market activity.

Bollen says “In fact, the calmness index appears to be a good predictor of whether the Dow Jones Industrial Average goes up or down between two and six days later”

'What we found was an accuracy of 87.6 percent in predicting the daily up and down changes in the closing values of the Dow Jones Industrial Average,' IU Associate Professor of Informatics - Johan Bollen

I sank into my chair. That’s a pretty big result,' Bollen told Wired. 'It was one of those "Eureka!" moments.

The link raises the startling possibility that stockbrokers may one day be able to make bets on the stock market based purely on how people are feeling on Twitter and blogs

Conclusion: One more time through this measures it only intimates altogether - Emotion, Character and Quality is proportionate to development.

Twitter tweets not just simple tweets..,

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