The impact of non-scheduled news on S&P/ASX50 stocks

With the large increase in the availability of news, growing numbers of financial market participants are relying on analytics software to evaluate news events. This paper explores whether indicators processed by analytics software are effective in assigning sentiment, and whether it is possible tot...

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Main Author: Smales, Lee
Format: Journal Article
Published: Financial Services Institute of Australasia (Finsia) 2014
Subjects:
Online Access:http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-2/the-impact-of-non-scheduled-news-on-s-p-asx-50-stocks.pdf?sfvrsn=7
http://hdl.handle.net/20.500.11937/32466
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author Smales, Lee
author_facet Smales, Lee
author_sort Smales, Lee
building Curtin Institutional Repository
collection Online Access
description With the large increase in the availability of news, growing numbers of financial market participants are relying on analytics software to evaluate news events. This paper explores whether indicators processed by analytics software are effective in assigning sentiment, and whether it is possible totrade profitably using such measures. Based on a sample of 33 highly liquid S&P/ASX 50 stocks, the results indicate that while the sentiment indicators correctly classify news, it is unlikely that trading strategies with time horizons of 30 seconds or more (and even moderate transaction costs) will produce statistically significant abnormal returns.
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format Journal Article
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institution Curtin University Malaysia
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publishDate 2014
publisher Financial Services Institute of Australasia (Finsia)
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spelling curtin-20.500.11937-324662017-01-30T13:31:08Z The impact of non-scheduled news on S&P/ASX50 stocks Smales, Lee sentiment analytics software S&P/ASX 50 With the large increase in the availability of news, growing numbers of financial market participants are relying on analytics software to evaluate news events. This paper explores whether indicators processed by analytics software are effective in assigning sentiment, and whether it is possible totrade profitably using such measures. Based on a sample of 33 highly liquid S&P/ASX 50 stocks, the results indicate that while the sentiment indicators correctly classify news, it is unlikely that trading strategies with time horizons of 30 seconds or more (and even moderate transaction costs) will produce statistically significant abnormal returns. 2014 Journal Article http://hdl.handle.net/20.500.11937/32466 http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-2/the-impact-of-non-scheduled-news-on-s-p-asx-50-stocks.pdf?sfvrsn=7 Financial Services Institute of Australasia (Finsia) restricted
spellingShingle sentiment
analytics software
S&P/ASX 50
Smales, Lee
The impact of non-scheduled news on S&P/ASX50 stocks
title The impact of non-scheduled news on S&P/ASX50 stocks
title_full The impact of non-scheduled news on S&P/ASX50 stocks
title_fullStr The impact of non-scheduled news on S&P/ASX50 stocks
title_full_unstemmed The impact of non-scheduled news on S&P/ASX50 stocks
title_short The impact of non-scheduled news on S&P/ASX50 stocks
title_sort impact of non-scheduled news on s&p/asx50 stocks
topic sentiment
analytics software
S&P/ASX 50
url http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-2/the-impact-of-non-scheduled-news-on-s-p-asx-50-stocks.pdf?sfvrsn=7
http://hdl.handle.net/20.500.11937/32466