SMA Sentiment Signature Feed
What is it?
What does it provide?
Who is it for?
The SMA Sentiment Signature Feed is a
unique market data feed that harnesses
the power of social media, and provides
sentiment analysis from those social
media sources. Since news often breaks
via social media first, the feed can be a
powerful tool for firms looking to spot
actionable trends.
With NYSE Technologies as the exclusive
re-seller of SMA’s offering, the SMA
Sentiment Signature Feed provides
actionable intelligence based on a highly
targeted Twitter user base.
This feed is ideal for equity and options
traders, portfolio managers, risk
managers, and corporate analysts
who need to bring the wealth of social
media information into their trading and
analytical processes.
Problem:
Solution:
Social media is a large and growing means of communication.
Twitter, in particular, has become a go-to news source, often
producing the fastest and earliest indications of global events.
Leveraging structured and quantified social media information,
the SMA Sentiment Signature Feed provides actionable
intelligence for traders and portfolio managers, risk and
compliance managers, media properties, corporate analysts, and
regulatory bodies to incorporate into their trading strategies.
More often than not, social media breaks news prior to the major
news outlets. There are currently over 500 million Tweets a day
– with expectations of over 1 billion Tweets per day within a year.
Until now, however, there has been no way to quantify this data.
POSTS
EXTRACTOR
The feed gathers Tweets from qualified sources (which are
growing at 10% per month) into a calculation engine where
it can deliver actionable intelligence before traditional media
sources. The analysis is primarily focused on stocks, stock
valuation, and price direction.
EVALUATOR
CALCULATOR
(Listen & Capture No Filtering)
(Relevant Post Filtering)
(Sentiment Signature)
STAGE 1
STAGE 2
STAGE 3
S FACTORS
How It Works:
NYSE Technologies’ partner, SMA, has a patent-pending
process to provide a “sentiment signature” for the universe of
tradable equities.
The sentiment signature provides social media statistics for the
universe of listed equities and ETFs at any given point in time. The
engine extracts the right data, evaluates it and calculates statistics
customers need for alerts, trading algorithms, and intelligence.
A sentiment signature is the essence of the feed that is now
available through SFTI and SuperFeed. It consists of a vector of
metrics published for a publically listed firm:
ƒƒ S-Score: Time-weighted representation of the Sentiment
time series, normalized against the S-Mean over a standard
look-back interval
ƒƒ S-Mean: Smoothed, weighted average of S-Scores for a
given security
ƒƒ S-Delta: The percent change in S-Score. A first order
measurement of the sentiment trend
ƒƒ S-Volatility: The standard deviation of a stock’s raw sentiment
time-series, calculated over a standard look-back interval
ƒƒ S-Volume: The volume of indicative tweets contributing to
S-Factor calculations at an observation time
ƒƒ S-Buzz: A measure of abnormal social media activity, which
compares a stock’s normalized sentiment volume to the
average sentiment volume for the universe of stocks
ƒƒ S-Dispersion: A measurement of the Tweet source diversity
contributing to a stock’s S-Score
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