Google queries and stock market volumes related

Nov 15, 2010

Financial markets and the 'swarm intelligence' of the internet are linked. This is the result of a joint study in which search engine query data are analyzed by Tobias Preis and Daniel Reith of Johannes Gutenberg University Mainz together with H. Eugene Stanley of Boston University.

"We asked the question whether or not there is a link between search volume data and financial on a weekly time scale", says Preis.

Search engine query data can deliver insight into the behavior of individuals who are submitting several hundred million search engine queries around the day each day. Aggregated query data provided by cover the time period from 2004 to present and are available for scientific use.

"Both collective 'swarm intelligence' of internet users and financial market participants can be regarded as a complex system of many interacting subunits that react quickly to external changes", explains Preis.

The authors find clear evidence that weekly transaction volumes of S&P 500 companies are correlated with weekly search volumes of corresponding company names. Thus, increasing transaction volumes coincide with an increasing number of search queries for the corresponding company name. However, stock price variations and changes of company's search volume show no significant correlation. The authors verify this effect for individual stocks as well as for the S&P 500 on an aggregated level.

"Thus, search volume data seems to coincide with the attractiveness of trading a stock", says Reith. The authors highlight that their finding can be of crucial importance for a deeper understanding of financial markets' complexity.

Explore further: Researchers help Boston Marathon organizers plan for 2014 race

More information: Tobias Preis, et al. "Complex dynamics of our economic life on different scales: insights from search engine query data", Philosophical Transactions of the Royal Society A 368, 5707-5720
DOI: 10.1098/rsta.2010.0284

Provided by Johannes Gutenberg University

4 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Branding matters -- even when searching

Jun 28, 2007

Web searchers who evaluated identical search-engine results overwhelmingly favored Yahoo! and Google, providing evidence that branding matters as much on the Internet as off, according to a Penn State study.

Yahoo! increases US search share, Bing up again

May 11, 2010

Yahoo! increased its share of the US search market by nearly a percentage point in April and Microsoft's new search engine Bing also recorded a slight gain, online tracking firm comScore said Tuesday.

Google search gets semantic

Mar 24, 2009

Google on Tuesday modified its globally popular Internet search service to understand relationships between words, as the company bids to better grasp what Web users are looking for.

Recommended for you

Newlyweds, be careful what you wish for

11 hours ago

A statistical analysis of the gift "fulfillments" at several hundred online wedding gift registries suggests that wedding guests are caught between a rock and a hard place when it comes to buying an appropriate gift for the ...

Can new understanding avert tragedy?

14 hours ago

As a boy growing up in Syracuse, NY, Sol Hsiang ran an experiment for a school project testing whether plants grow better sprinkled with water vs orange juice. Today, 20 years later, he applies complex statistical ...

Crowd-sourcing Britain's Bronze Age

14 hours ago

A new joint project by the British Museum and the UCL Institute of Archaeology is seeking online contributions from members of the public to enhance a major British Bronze Age archive and artefact collection.

Roman dig 'transforms understanding' of ancient port

14 hours ago

(Phys.org) —Researchers from the universities of Cambridge and Southampton have discovered a new section of the boundary wall of the ancient Roman port of Ostia, proving the city was much larger than previously ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

JES
not rated yet Nov 20, 2010
Trade volume = higher number of searches....wow. Who would have ever guessed....

More news stories

Newlyweds, be careful what you wish for

A statistical analysis of the gift "fulfillments" at several hundred online wedding gift registries suggests that wedding guests are caught between a rock and a hard place when it comes to buying an appropriate gift for the ...

Can new understanding avert tragedy?

As a boy growing up in Syracuse, NY, Sol Hsiang ran an experiment for a school project testing whether plants grow better sprinkled with water vs orange juice. Today, 20 years later, he applies complex statistical ...

Roman dig 'transforms understanding' of ancient port

(Phys.org) —Researchers from the universities of Cambridge and Southampton have discovered a new section of the boundary wall of the ancient Roman port of Ostia, proving the city was much larger than previously ...

Crowd-sourcing Britain's Bronze Age

A new joint project by the British Museum and the UCL Institute of Archaeology is seeking online contributions from members of the public to enhance a major British Bronze Age archive and artefact collection.

Better thermal-imaging lens from waste sulfur

Sulfur left over from refining fossil fuels can be transformed into cheap, lightweight, plastic lenses for infrared devices, including night-vision goggles, a University of Arizona-led international team ...

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...