The S&P 500 Twitter Sentiment Index will measure the performance of the 200 largest companies within the S&P 500 with “the highest expectation scores”, based on how users of the social network are analyzing stocks, said S&P Dow Jones Indices.
Companies in the index will be weighted by market capitalization. A second index will measure the performance of the top 50 companies with equal weight.
The new indices come at a time when tweets about finance are on the rise on the San Francisco-based social network, especially with the growth of cryptocurrencies. Conversations related to finance increased more than 26% in 2020 from the previous yearsaid Twitter.
S&P DJI said it will measure Twitter expectations of S&P 500 companies on a daily basis, analyzing tweets that contain a “cashtag,” a stock symbol that works similar to hashtags, and measures whether tweets are more positive or negative. . Both indices will be rebalanced monthly.
Amazon.com Inc, JPMorgan Chase & Co and Meta Platforms Inc, Facebook’s new name, will be among the companies on the Twitter Sentiment Index, S&P DJI said, though it declined to provide the full list.
Source From: Ambito
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