Thomson Reuters is enhancing its news analytics service in collaboration with MarketPsych to introduce Thomson Reuters MarketPsych Indices, based on analysis of news and social media. The indices provide insight into emotion and sentiment associated with specific countries, commodities, currencies and economic sectors.
By leveraging TRMIs, users can view and model the impact of investor psychology across global asset classes and regions by analysing the specific attitudes expressed within stories and tracking the macroeconomic themes that are most relevant to price movements in each asset class.
TRMIs are tailored to specific topics and asset classes and reflect the levels of specific psychological dimensions expressed in news and social media such as optimism, gloom, joy, fear, trust, anger, innovation, violence, conflict, stress, urgency and uncertainty, among others. TRMIs also provide a set of metrics on common macroeconomic themes known to influence the prices of commodities and currencies, the growth of economic sectors, and the development of nations. For example, the feed quantifies such items as "Crop Disease" for agricultural commodities or "Currency Peg Instability" for foreign exchange markets.
MarketPsych has experience in identifying signals in data through internally developed statistical software that hones in on the valuable and predictive aspects of this data. The company's text-analysis technology extracts complex meanings from text including such factors as "Crop Disease," "Government Anger," and "Earnings Expectations." These concepts are attributed to relevant entities and scored using a patent-pending "meaning-generation" technology, which is a form of natural language processing that identifies the meaning in text by scoring the relationships between key modifier words, significant concepts and entities of attribution. The system’s logic takes into account all of the specific mentions in various news and social media posts and aggregates that data into the specific indices.