Start Date
2-5-2022 11:15 AM
Description
Reddit is the most popular online forum on the internet, but its effects on the stock market remain relatively unstudied. While Reddit has proven to be an effective platform for influencing the price of individual stocks such as in the short-squeeze of GameStop, the influence of Reddit on broader macroeconomic trends is less clear. To answer this question, I will compare the “mood” of the top 1,000 daily Reddit posts to market index performance from the same day in order to find any potential correlation.
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Correlating Reddit Sentiment and Market Returns
Reddit is the most popular online forum on the internet, but its effects on the stock market remain relatively unstudied. While Reddit has proven to be an effective platform for influencing the price of individual stocks such as in the short-squeeze of GameStop, the influence of Reddit on broader macroeconomic trends is less clear. To answer this question, I will compare the “mood” of the top 1,000 daily Reddit posts to market index performance from the same day in order to find any potential correlation.
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Mentor: Andrew Forney