Prediction by Twitter

Hedging your stocks with Twitter

November 21, 2011

Professor Johan Bollen has been looking at raw Twitter data to help discover trends and insight. Using an algorithm called the Google-Profile of Mood States (GPOMS), Prof. Bollen and team looked at almost 10 million tweets from 2.7 million tweeters in 2008 to see if there was a correlation between mood states and the daily Dow Jones Industrial Average.

"Their extraordinary conclusion is that there really is a correlation between the Dow Jones Industrial Average and one of the GPOMS indices--calmness."
via Technology Review.

Time Magazine thought that was so cool it added it to its 50 Best Inventions' Issue. Congrats to Professor Bollen!