Featured Research

from universities, journals, and other organizations

Google queries and stock market volumes: Financial markets and Internet's 'swarm intelligence' linked, researchers find

Date:
November 15, 2010
Source:
Johannes Gutenberg University Mainz
Summary:
Financial markets and the 'swarm intelligence' of the internet are linked, according to a new study that analyzed search engine query data.

Financial markets and the 'swarm intelligence' of the internet are linked, according to a new study in which search engine query data were analyzed by Tobias Preis and Daniel Reith (Johannes Gutenberg University Mainz, Germany), together with H. Eugene Stanley (Boston University, USA).

"We asked the question whether or not there is a link between search volume data and financial market fluctuations on a weekly time scale", says Preis.

Search engine query data can deliver insight into the behavior of individuals who are submitting several hundred million search engine queries around the day each day. Aggregated query data provided by Google cover the time period from 2004 to present and are available for scientific use. 

"Both collective 'swarm intelligence' of internet users and financial market participants can be regarded as a complex system of many interacting subunits that react quickly to external changes", explains Preis.

The authors find clear evidence that weekly transaction volumes of S&P 500 companies are correlated with weekly search volumes of corresponding company names. Thus, increasing transaction volumes coincide with an increasing number of search queries for the corresponding company name. However, stock price variations and changes of company's search volume show no significant correlation. The authors verify this effect for individual stocks as well as for the S&P 500 on an aggregated level. "Thus, search volume data seems to coincide with the attractiveness of trading a stock", says Reith. The authors highlight that their finding can be of crucial importance for a deeper understanding of financial markets' complexity.

The study is published in the latest issue of Philosophical Transactions of the Royal Society A.


Story Source:

The above story is based on materials provided by Johannes Gutenberg University Mainz. Note: Materials may be edited for content and length.


Journal Reference:

  1. Tobias Preis1, Daniel Reith, H. Eugene Stanley. Complex dynamics of our economic life on different scales: insights from search engine query data. Philosophical Transactions of the Royal Society A, 2010; 368 (1933): 5707-5719 DOI: 10.1098/rsta.2010.0284

Cite This Page:

Johannes Gutenberg University Mainz. "Google queries and stock market volumes: Financial markets and Internet's 'swarm intelligence' linked, researchers find." ScienceDaily. ScienceDaily, 15 November 2010. <www.sciencedaily.com/releases/2010/11/101115074035.htm>.
Johannes Gutenberg University Mainz. (2010, November 15). Google queries and stock market volumes: Financial markets and Internet's 'swarm intelligence' linked, researchers find. ScienceDaily. Retrieved July 30, 2014 from www.sciencedaily.com/releases/2010/11/101115074035.htm
Johannes Gutenberg University Mainz. "Google queries and stock market volumes: Financial markets and Internet's 'swarm intelligence' linked, researchers find." ScienceDaily. www.sciencedaily.com/releases/2010/11/101115074035.htm (accessed July 30, 2014).

Share This




More Computers & Math News

Wednesday, July 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services


Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins