Quantifying Tweets: Trading on 140 Characters

Social media analysis… for traders? That statement 5 years ago elicited a much different response than it does now. The market now recognizes the importance – and the impact – of social media channels, and as such, has recognized the need to monitor and trade off the research created from that data.

One of the earliest and most important voices in this conversation was that of Joe Gits and the Social Market Analytics team. Which is why we are incredibly excited to announce that they’ve joined the Plugged In to Gnip partner program.

Social Market Analytics quantifies social data for traders, portfolio managers, hedge funds and risk managers. Their technology extracts, evaluates and calculates social data to generate directional sentiment and volatility indications on stocks, ETFs, sectors and indices – providing predictive indicators for clients. They have succeeded in turning qualitative text into quantitative indicators that can easily be incorporated into trading strategies – broadening the types of traders and firms who can now access and incorporate social signal into their decision making.

As shown in their recently announced agreement with New York Stock Exchange (allowing NYSE reseller and distribution rights to their sentiment feed), SMA is helping bring social analytics to a wider group of financial firms than has ever been possible. That client base requires the highest-level of enterprise reliability in the products they buy –  which means SMA’s product requires the strongest data foundation possible. And Gnip is honored to be the company providing the reliable and complete access to the social data that fuels this solution.

To see what their technology looks like, check out the webinar we recently held with them.