- Roskilde University Denmark
This paper, seeks to examine the correlation between stock price and public sentiment expressed through social media. Through twitter scraping and pre- processing, sentiment can be extracted from text. The paper will be based on a heuristic approach to natural language processing. Furthermore, the paper will rely on the most common forms of sentiment analysis, using a rule-based and a machine-learning approach as a starting point and weigh these up against each other. Finally, we will continue with the best performing method, and weigh this up against real market data in a pursuit to find a correlation, should one exist. The paper found a sentiment-to-market accuracy 75%. And the accuracy score utilizing the rules-based approach of 72,72%.