An Introduction

Welcome to the Sentiment News Blog where I plan to post interesting information about the application of news sentiment analysis in both short- and long-term investment decision making.

In search for alpha, quantitative analysts are continuously looking to identify new data sources to maintain their edge in the alpha-generation process. As many of the popular quant-factors have become overcrowded (“quantcentration”), they have also become less effective as more people are chasing the same (limited) alpha opportunities. Asset Management companies have realized the necessity to invest in continued research into the development of less crowded proprietary factors. The availability of News Sentiment data opens up for new sources of potential alpha generation, but also raises the interesting question: “Is news sentiment predictive or mostly explanatory?”. Going forward, I will post some of the research findings that tries to answer this question either directly or indirectly, this amongst other interesting topics within this field.

Comments and ideas are more than welcome, and I hope that we will be able to engage in lively discussions as we start the journey down the News Analytics highway.

Peter Hafez