Yao-Tsung Chen

May 24, 2024 | pm-research.com | Yao-Tsung Chen |In Taiwan |Shu-Yi Lin |Cheng-Yen Yu

Information published by news media affects stock prices through two channels. One is the information therein, which can cause a permanent price change. Pinpointing general durations and correlations for every piece of information and price change with a machine learning algorithm is difficult, however. The second channel is investor sentiment, which can result in a temporary price change. Much literature contains general rules for predicting price changes based on investor sentiment.