Search Engines Can Predict Stock Returns
Source: ThirdAge
Stocks climbed Monday, with the Standard & Poor's 500 pushing above 1,200 for the first time in nearly two weeks.
Search engines can help predict stock returns, a University of Kansas research team says.
Large numbers of online searches for a particular stock can predict abnormal stock returns and trading volumes the subsequent week, the researchers tell the Associated Press.
Associate marketing professor Kissan Joseph says there's growing evidence in various disciplines that online search data can predict behavior, the Associated Press reports.
The kind of data that can be retrieved from an engine like Google Insights for Search is a reliable predictor of stock returns and trading volumes, especially for volatile stocks whose true value is hard to guage, Joeseph tells the AP.
The university says in a news release reported by the AP that the team's research utilizes S&P 500 firms over the period 2005-2008.
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