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We've got a good one for you this week on conference room I'm Jeff Flock thanks for watching.
Two issues this week entrepreneurship.
And the stock market to very important topics -- our viewers and watchers.
I'm at a company called social market analytics what you're looking as proprietary information you have to subscribe to this but -- -- -- -- see -- here.
On the Fox Business Network.
These folks aggregate.
The social media universe specifically Twitter.
Joseph gets -- founder president CEO.
Jeff -- -- who is the principal research scientist for.
You folks tell me Joseph what -- -- you do.
Basically what we do is we provide investors actionable meaningful intelligence on publicly traded securities based on social media -- like he said Twitter.
Now that you're not the only folks doing this but perhaps the most refined system take a look at the stocks.
They compute something called an escort Joseph tell us what the F score the score is a normalize representation of current activity -- the escort is.
Standard deviations from a normal baseline and that's really unique.
So when I look at these stocks these are all three plus standard deviations from the normal amount of positive activity on the stocks this is four times the normal activity.
And let's just take a look at one stock for example an example green mountain coffee that is on your list as three point eight standard deviations.
Above what you would expect for positive right.
That's correct green mountain coffee's great social media analytics -- it because it.
It gives you a chance to get in in obviously with data like this it's the ability to act and that intelligence and -- you wanna get in before you get the big gap in green mountain.
Typically gives the opportunity because what often happens on social media and this is particularly Jeff you've put the program together on this you target.
It's not just little kids tweeting out there or somebody sitting in a coffee shop somewhere in office to those folks especially green mountain coffee folks.
But you're looking at people in the know and what they are saying about the stocks and what you saw on this -- you saw positive activity.
-- on this stock for sentiment before the conference call where they had a great.
During the during the trading debut for some it's much negative -- as the day progressed the importance.
And Osasuna and -- I -- -- bit and let the sole inventor this I have a team owners so.
Colleagues -- foolish and Kurt Mayer whose -- Ph.D.s that put this together.
And -- obviously.
Mining social media is nothing new but taking it to the level which you have.
What did you do different.
Well we approach the problem from the same avenue that we do when we are building training systems and we are building analytical software so we sat down and said okay how we look at this stated if we're creating -- trading -- It's that we really put the statistical -- behind it that we did in our past you ask you to pull me up the cumulative return so I want to show that to the viewers as well but also wanna look at the stock chart this is.
Let's see what I'm looking at here this is this is green mountain coffee again this is from our Fox Business web site.
You can see.
This was the stock activity on this and that was the big jump but the sentiment was jumping up long before you got to move in the stock.
That's exactly right so that sentiment gave an indication that the stock was going to be heading higher and he gave you a lot of time they actually -- and make the trade.
And you would have made a very nice profit.
-- here and to illustrate that.
This is there a correlation between -- scores that is to say sentiments course positive and negative and cumulative returns on these stocks and Jeff -- my looking at right here.
-- looking at the performance of a sequence of portfolios that are -- going along at the open escorts the experience to.
That's the Green Line selling the clothes the black line is the performances -- -- This interval.
The Green Line as a 34% return this.
In some cute and about 13%.
The Red Line is if he would too long and negative -- -- and it's easier.
-- 6% return isn't just that you don't just look at positive stuff if we come back here maybe if we pull that back off and we we pull that back off Americas in addition to the positive test scores.
Go ahead and pull that up to Jeff -- -- could.
These -- the bottom score so we see negativity for example there's zillow.
Which on this date was trending down.
You keep track of that too because -- I've got a stock I wanna know if there's negative activity -- absolutely you -- Everest managers interested in this you can have volatility traders.
And people looking you just take a short position.
-- a company founded 20112012.
Now partnering with New York Stock Exchange you've got a number of subscribers that's correct so with New York Stock Exchange we're going to be providing our data on their New York Stock Exchange safety he so it allows hedge funds money managers quick access and data and soon you will expand this so that investors like me and others -- so.
We're putting together right now product for the active traders that'll enable you to get there at the same information that the hedge funds -- -- trading.
So far for here on the Fox Business Network you're seeing what some day traders will be able to see which is to track.
The Twitter verse and not just the entire -- Twitter -- buddy.
Version of that with the folks that you're just in the know what are they saying about stocks in advance of what the market is doing.
Fascinating stuff exclusively here on the Fox Business Network on this week's edition of conference --
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