The growing importance of Sentiment Analysis applied to finance bring forth many questions to minds like why “Sentiment Analysis is important and why is online media and social media important to look at? Sentiment analysis tools automatically extract opinions, emotions and sentiments in text. It also allows individuals to get an opinion on reviews on a global scale. In terms of artificial intelligence, sentiment analysis uses a lot of mathematical calculation to determine whether the reviews capture positive or negative opinions.
Social media has created a new world of venting customer voice. Sentiment analysis offers organisations the ability to observe the different social media sites in real time and then act accordingly. Twitter is considered to be the ocean of sentiment data. Anyone can extract the data easily by searching on hash tags (#) on twitter.
I came across Michelle Price’s article “Taking sentiment analysis beyond trading” in Financial News on 3 December 2012. She said, “When the financial industry first embraced sentiment analysis of news and social media sites, it was chiefly regarded as a means of making money”. She also referred to Richard Brown, head of quantitative and event-driven trading solutions at Thomson Reuters, saying: “In terms of the value from social media sites, we’re at the tip of the iceberg at what the industry can achieve.
Sentiment analysis has developed as a technology that applies machine learning to make a rapid assessment of the sentiments expressed in news releases. Investment managers, funds managers, marketing managers, and equity investors are the direct beneficiaries of sentiment analysis technology.
News events impact market sentiment and financial news moves stock prices through a direct impact on a company’s expected future cash flows. Based on this concept UNICOM in collaboration with OptiRisk Systems is organizing a conference “Sentiment Analysis Applied to Finance”. This conference presents the current state of the art in the application of Sentiment Analysis to the respective models of trading, fund management and risk control. The conference presents in a summary form the research results in this fast-emerging field.
Many leading technical specialists will participate in this conference and present overview talks, case studies of their fields and experiences.
UNICOM and OptiRisk have been working recently with a number of partner institutions who are highly regarded in the area of finance: PRMIA, the 14 – 10 Club @ the Royal Institution (The 14-10 Club is exclusively for finance professionals. It was set up in 2011 and is sponsored by Investment Banks and leading hedge funds). On the commercial side they also have partnership with The Mankoff Company . In partnership with these professional institutions, UNICOM and OptiRisk are organising the “Sentiment Analysis Applied to Finance” conference in June/July to attract a wide audience.