Abstract
This paper explores the use of Google trending data as a indicator for market sentiment. The Google query record on keywords including stock, market, correction, and crash are incorporated into an event based trading model for S&P 500 index in an attempt to identify significantly enhanced risk-profile of the trading results. Our study showed that the collective Google query can be an effective measure of market perception of risk. Furthermore, the collective perception on market risk, either over or under-reacted, can be a prelude indicator of immediate market volatility.
| Original language | American English |
|---|---|
| Pages (from-to) | 29-36 |
| Number of pages | 8 |
| Journal | Journal of Applied Financial Research (JAFR) |
| Volume | 1 |
| State | Published - Apr 2018 |
Keywords
- Google trend
- market timing
- S&P 500
- behavior finance
- risk perception