In her Master’s thesis, Razije Tairi analysed the impact of micro-blogs on stock market forecasting, in particular the effect of Twitter on the development of new trading strategies. The aim was to find out whether such a strategy could deliver a higher return than a traditional buy-and-hold strategy. Razije Tairi collected and analysed over 155,000 Twitter messages with a corresponding stock symbol. In order to derive a trading strategy from the Twitter messages, a «sentiment indicator» was created. With such an indicator, the Twitter messages can be further structured into positive or negative messages from which buy or sell signals can be derived. The results of this work have shown that such an innovative trading strategy can perform better than a buy-and-hold strategy. You can find a more extensive summary of the thesis here.
With this work, Razije Tairi made an original contribution to a new area of research. Moreover, the connection between social media and share price developments is shown to be highly relevant.
We congratulate our MSc in Banking and Finance graduate Razije Tairi on winning the «Master’s Recognition Award». This award is presented by SwissLife Asset Managers and their partners, the newspaper “Finanz und Wirtschaft” and the Lucerne University of Applied Sciences and Arts, for particularly outstanding master's theses. Razije Tairi was awarded with CHF 2,500 for her successful work.