The impact of Twitter-based sentiment on US sectoral returns

<p dir="ltr">This paper scrutinizes the effect of Twitter-based sentiment on US sectoral returns using data from between 21 June 2010 and 13 April 2020. We apply causality in quantiles as a non-parametric measure, followed by a rolling window wavelet correlation. The former measures...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Rami Zeitun (17075215) (author)
مؤلفون آخرون: Mobeen Ur Rehman (15282575) (author), Nasir Ahmad (821439) (author), Xuan Vinh Vo (15353934) (author)
منشور في: 2023
الموضوعات:
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author Rami Zeitun (17075215)
author2 Mobeen Ur Rehman (15282575)
Nasir Ahmad (821439)
Xuan Vinh Vo (15353934)
author2_role author
author
author
author_facet Rami Zeitun (17075215)
Mobeen Ur Rehman (15282575)
Nasir Ahmad (821439)
Xuan Vinh Vo (15353934)
author_role author
dc.creator.none.fl_str_mv Rami Zeitun (17075215)
Mobeen Ur Rehman (15282575)
Nasir Ahmad (821439)
Xuan Vinh Vo (15353934)
dc.date.none.fl_str_mv 2023-01-01T00:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.najef.2022.101847
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/The_impact_of_Twitter-based_sentiment_on_US_sectoral_returns/24501133
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Information and computing sciences
Human-centred computing
US sectoral returns
Investor sentiments
S&P 500
Causality
Wavelet correlation
dc.title.none.fl_str_mv The impact of Twitter-based sentiment on US sectoral returns
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">This paper scrutinizes the effect of Twitter-based sentiment on US sectoral returns using data from between 21 June 2010 and 13 April 2020. We apply causality in quantiles as a non-parametric measure, followed by a rolling window wavelet correlation. The former measures the manifestation of causality directed from Twitter-based sentiment towards US sectoral returns, whereas the latter measures the correlation of returns across decomposed series that correspond to different time horizons. Our results highlight symmetric changes in US sectoral returns that vary across different sectors. The healthcare, communications, materials, consumer discretionary, energy, staples, and information technology sectors are more sensitive to changes in Twitter-based sentiment across all quantiles. Our findings from the rolling window wavelet correlation point to low correlation values for all decomposed series (i.e., long-, medium-, and short-run). Our findings have value for investors in the US sectoral market because they may be helpful for constructing and rebalancing portfolios based on varying levels of correlation across different quantile distributions and investment periods.</p><h2>Other Information</h2><p dir="ltr">Published in: The North American Journal of Economics and Finance<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.najef.2022.101847" target="_blank">https://dx.doi.org/10.1016/j.najef.2022.101847</a></p>
eu_rights_str_mv openAccess
id Manara2_7711416c6d16b411bb06c4c026eb2294
identifier_str_mv 10.1016/j.najef.2022.101847
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/24501133
publishDate 2023
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repository.name.fl_str_mv
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rights_invalid_str_mv CC BY 4.0
spelling The impact of Twitter-based sentiment on US sectoral returnsRami Zeitun (17075215)Mobeen Ur Rehman (15282575)Nasir Ahmad (821439)Xuan Vinh Vo (15353934)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsInformation and computing sciencesHuman-centred computingUS sectoral returnsInvestor sentimentsS&P 500CausalityWavelet correlation<p dir="ltr">This paper scrutinizes the effect of Twitter-based sentiment on US sectoral returns using data from between 21 June 2010 and 13 April 2020. We apply causality in quantiles as a non-parametric measure, followed by a rolling window wavelet correlation. The former measures the manifestation of causality directed from Twitter-based sentiment towards US sectoral returns, whereas the latter measures the correlation of returns across decomposed series that correspond to different time horizons. Our results highlight symmetric changes in US sectoral returns that vary across different sectors. The healthcare, communications, materials, consumer discretionary, energy, staples, and information technology sectors are more sensitive to changes in Twitter-based sentiment across all quantiles. Our findings from the rolling window wavelet correlation point to low correlation values for all decomposed series (i.e., long-, medium-, and short-run). Our findings have value for investors in the US sectoral market because they may be helpful for constructing and rebalancing portfolios based on varying levels of correlation across different quantile distributions and investment periods.</p><h2>Other Information</h2><p dir="ltr">Published in: The North American Journal of Economics and Finance<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.najef.2022.101847" target="_blank">https://dx.doi.org/10.1016/j.najef.2022.101847</a></p>2023-01-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.najef.2022.101847https://figshare.com/articles/journal_contribution/The_impact_of_Twitter-based_sentiment_on_US_sectoral_returns/24501133CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/245011332023-01-01T00:00:00Z
spellingShingle The impact of Twitter-based sentiment on US sectoral returns
Rami Zeitun (17075215)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Information and computing sciences
Human-centred computing
US sectoral returns
Investor sentiments
S&P 500
Causality
Wavelet correlation
status_str publishedVersion
title The impact of Twitter-based sentiment on US sectoral returns
title_full The impact of Twitter-based sentiment on US sectoral returns
title_fullStr The impact of Twitter-based sentiment on US sectoral returns
title_full_unstemmed The impact of Twitter-based sentiment on US sectoral returns
title_short The impact of Twitter-based sentiment on US sectoral returns
title_sort The impact of Twitter-based sentiment on US sectoral returns
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Information and computing sciences
Human-centred computing
US sectoral returns
Investor sentiments
S&P 500
Causality
Wavelet correlation