Social media discussions anticipates financial market volumes

Giulio Vicentini, Alessandro Nucci, Guido Caldarelli and Elisa Omodei

Physica A: Statistical Mechanics and its Applications, 2025, vol. 661, issue C

Abstract: The role of social media platforms, where opinions form and are shared, in stock market movements is becoming increasingly important. Several past studies have demonstrated the predictive power of web-based information analysis on investor sentiment and opinion. This paper analyzes the present relationship between discussions on X (previously known as Twitter) and market movements. Additionally, we contribute to the existing body of knowledge by introducing novel approaches grounded in information theory. Through empirical analysis and advanced statistical techniques, our study sheds light on the continued influence of social media sentiment on stock price returns, providing valuable insights for investors and market analysts navigating the complexities of modern financial markets.

Keywords: Econophysics; Complex networks; Information theory (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437125000408
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:661:y:2025:i:c:s0378437125000408

DOI: 10.1016/j.physa.2025.130388

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().