A family-owned hedge fund will offer investors the chance to use Twitter posts to gauge the mood of the stockmarket.
Derwent Capital Markets' Absolute Return fund, set to start trading in February with an initial £25m under management, will follow posts on the social-networking website, Bloomberg reports. A trading model will highlight when the number of times words on Twitter such as “calm” rise above or below average. Research published jointly by the University of Manchester and the Indiana University in the US said the number of emotional words on Twitter could be used to predict daily moves in the Dow Jones Industrial Average. A change in emotions expressed online would be followed between t...
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