Social Sentiment Analysis for Hong Kong Financial Markets

Abstract

This paper investigates the correlation between the movements of Hang Seng Index (HSI) and the social media sentiments in Hong Kong. The idea of this paper comes from a research paper titled "Twitter mood predicts the stock market" which proves an 82.7% accuracy of predicting Dow Jones Industrial Average (DJIA) by sentiment data of Twitter tweets. To apply such idea into the situation of Hong Kong, this paper analyzed two data sets: the sentiment data from a popular Hong Kong forum and the change of Hang Seng Index. Hang Seng Index is chosen to represent the Hong Kong Financial Market because it concludes the major Hong Kong Financial Market. The result shows there is weak correlation between the social sentiment and the HSI movement.