Refinitiv releases stock-ranking model in collaboration with MarketPsych

Maria Nikolova

StarMine MarketPsych Media Sentiment scores are set for use in factor models, buy/sell recommendations and sentiment profiling by traders, quantitative analysts and risk managers.

Refinitiv, a major provider of financial markets data and infrastructure, has released its first partnered stock-ranking model, StarMine MarketPsych Media Sentiment (MMS), in collaboration with quantitative behavioral finance expert MarketPsych.

The model combines financial media sentiment data and research from MarketPsych with the stock-ranking approach and rigorous methodologies from StarMine. MMS scores are intended for use in factor models, buy/sell recommendations and sentiment profiling by traders, quantitative analysts and risk managers.

MMS, which forecasts return rankings over 30 days, distills sentiments about individual stocks from millions of news articles and social media comments each day into a single daily percentile ranking for over 5,000 US-listed stocks. The model shows consistent outperformance between higher and lower deciles and also demonstrates little to no correlation to traditional market factors and other StarMine models.

Quantifiable company sentiments and themes are aggregated into MMS’ daily scores, which are derived from Refinitiv’s MarketPsych Indices (RMI). With a history of over 20 years, RMI is a unique dataset scoring media buzz, emotions and topics across thousands of news and social media sites.

Dr. Richard Peterson, CEO of MarketPsych, said: “The MMS model is a milestone both in our partnership with Refinitiv and in our work predicting financial market behavior. We are honored to have created this unique predictive product in collaboration with the modeling experts at StarMine.”

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