Quantification of Investor Emotion in Financial News by Analyzing The Stock Price Reaction

Syed Mamoon Ahmed
2017 Figshare  
It is in our nature to measure the intensityof an unseen event by observing its impact on theaffected entity. Since reaction of the trader crowd to afinancial event in form of stock price movement veryclosely reflects the severity of that event, words usedin the news to describe that event also exhibit similardegree of emotion. Thus, we can assign emotionalvalence rating to the most relevant words in the newsusing this reversed relationship of causality insteadof assigning assumed emotional
more » ... sumed emotional valence to words,like it has been the case in many previous works.We have gathered data for financial events of thepast from stock exchange and have mathematicallyanalyzed it to quantify the impact of those events.These results are then applied to assign ratings to morethan 7000 PoS-tagged English stems extracted fromfinancial news articles for the corresponding eventsusing Natural Language Processing techniques. In thisway, a domain-specific word-emotion lexicon has beencreated.
doi:10.6084/m9.figshare.5687422.v1 fatcat:gffenso3wfcf7hopxu5bpxdq3m