This week-end JPMorgan Chase & Co. published the “volfefe Index” tracking the impact of Trump’s tweets on US Bonds market volatility : https://www.marketwatch.com/story/are-trump-tweets-influencing-bond-volatility-jp-morgans-volfefe-index-aims-to-find-out-2019-09-09
At Sysmo, we were quite surprised of their findings since we studied the topic when building the “Trump Mood Predictor” a few months ago and did not find strong and/or continuous correlation between Trump’s tweeting habit and market volatility => http://sysmo.io/en/trump
Then, we took a closer look and realized that the report of JP Morgan was highly questionable in terms of methodology.
Let’s sum it up this way: JP Morgan only looks at tweets that are followed by a spike in volatility and plot them against the volatility
Almost perfect correlation 🎉
We used the same approach as JPM by analyzing one year of Kim Kardashian’s Tweets Vs. S&P 500. You will not believe what we found out...
@ Journalists, Analysts and influencers: Pay attention to what you share - Data Science makes everything looks cool and shiny but by torturing numbers you end up having them telling you what you wanted to hear!
Original post from Linkedin : https://www.linkedin.com/feed/update/urn:li:activity:6577197230741172224/