Evaluation of methods and techniques for language based sentiment analysis for dax 30 stock exchange - A first concept of a "LUGO" sentiment indicator

Abstract

Social media companies are famous for creating communities, or their companies for IPOs. However, social media are as well utilized in stock exchange trading and for product promotion of securities of financial investment companies. Especially stock exchange trading is many times based on sentiment, thus fast spreading rumors and news. Within the scope of this publication, we aim at an evaluation of potential methods and techniques for language based sentiment analysis for the purpose of stock exchange trading. Within the scope of this publication we evaluate a possible technique to obtain a technical indicator based on social media, which should support investment decisions. We present a basic experimental setup and try to describe the LUGO Sentiment Indicator as possible tool for supporting investment decisions based on a social media sentiment analysis. Copyright © (2012) by International Ambient Media Association (iAMEA).