Applied sentiment investing using data from the social Internet

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Our Technology

There are two key parts to the AlphaGenius technology. It crawls the Internet to collect and curate social web data from sources like Twitter, Facebook, blogs, and forums. That data is then combined with traditional economic indicators. Finally, it runs millions of relationships through a proprietary machine learning econometrics engine that produces hundreds of statistical investing models. Often one model will take a week of dedicated computer processing!

What We Believe

Invest Different! Investors should use Twitter and the social Internet as a tool to help make investment decisions. The social Internet has the major advantage of providing the collective consciousness of the world. For the first time in human history the well proven concepts of behavioral economics can be applied to mass psychology to help predict securities prices. We believe that behavioral investing will some day be as ubiquitous as fundamental and technical analysis. The social Internet is a rich data source for fundamental, technical, and quantitative investors.

Example

Post earnings announcement drift (PEAD) has been a long observed phenomenon in the quant world. Stocks prices are more likely to "drift" in the direction of their initial movement if it is based on a news event. Similar phenomenon can be observed with people Tweeting reactions to a stocks earnings announcement. A stock may not mean revert if its price moves are based on measurable changes in sentiment versus supply and demand imbalances.