Advertisements

‘Big data’ from social media, elsewhere online take trend-watching to new level

From a trading desk in London, Paul Hawtin monitors the fire hose of more than 340 million Twitter posts flying around the world each day to try to assess the collective mood of the populace.

The computer program he is using generates a global sentiment score from 1 to 50 based on how pessimistic or optimistic people seem to be from their online conversations. Hawtin, chief executive of Derwent Capital Markets, buys and trades millions of dollars of stocks for private investors based on that number: When everyone appears happy, he generally buys. When anxiety runs high, he sells short.

Hawtin has seen a gain of more than 7 percent in the first quarter of this year, and his method shows the advantage individuals, companies and governments are gaining as they take hold of the unprecedented amount of data online. Traders such as Hawtin say analyzing mathematical trends on the Web delivers insights and news faster than traditional investment approaches.

The explosion in the use of Google,Facebook, Twitter and other services has resulted in the generation of some 2.5 quintillion bytes each day, according toIBM.

“Big data,” as it has been dubbed by researchers, has become so valuable that the World Economic Forum, in a report published last year, deemed it a new class of economic asset, like oil.  Read More

Advertisements

About Rant4u

A Revolution in Social Networking

Posted on June 6, 2012, in #social media and tagged , , , , , . Bookmark the permalink. Leave a comment.

Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: