Twitter (X) Sentiment Off to Hot 2025 Start, Outperforming the Market
Context Analytics (CA) is the leader in processing and structuring textual data for sentiment analysis. CA ingests data from a variety of sources including X (formerly Twitter). CA grades the sentiment from X tweets on a scale of -1.000 to 1.000, aggregates them?over a 24-hour period, and compares it to a historical baseline of 20 days to create S-Factors.?The S-Factor feed is one of Context Analytics' longest-running products and includes the S-Score, which is a description of how positive or negative sentiment is by security.
The purpose of this blog is to illustrate how our data is performing while the market is off to such a strong start. One of our core strategies involves applying a simple daily threshold to sentiment scores: scores greater than 2 or less than -2. When a security's S-Score exceeds 2, it is added to our long portfolio; if it falls below -2, it is added to our short portfolio. We then construct a theoretical long/short portfolio using both. These portfolios are rebalanced daily based on the latest S-Scores for securities priced above $5. We conduct this analysis on both close-to-close (using sentiment data at 15:40 ET) and open-to-close (at 9:10 ET) intervals.
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