HedgeChatter has launched an online SaaS dashboard that allows investors, traders and hedge funds to see how key influencers on social media are affecting stock price and view price trends based on real-time social media data (chatter).
HedgeChatter processes nearly 1.8 million financial chatter messages every day from Twitter and other leading social channels. These messages are filtered for noise reduction, manipulation detection and price-to-message correlation, resulting in predictive alerts for stock direction.
HedgeChatter is different from other social analytics firms by correlating multiple social media financial metrics and displaying the information visually. Many of the platform's functionalities are available free to users at hedgefund.hedgechatter.com.
"Hedge funds, wealth management firms and high-net-worth individuals have begun looking for ways to incorporate social media's impact on stock price into their overall trading strategies. There is huge demand to capitalise on this lucrative insight. The current competition offers services to just see trends in the volume of social chatter, which is only where HedgeChatter begins," says HedgeChatter chief executive James Ross. "HedgeChatter not only looks at volume, but the tone of the conversations and author reputations, to deliver actionable insights from social media and news feeds. Clear and definitive social insights on stock price is exactly what HedgeChatter.com provides."
"Social media sentiment will play an increasing role in investment analysis as unstructured social networks like Twitter continue to attain mass adoption. The effectiveness of any particular social data-investing platform will hinge on its ability to decipher credible and influential chatter from social noise," says Chris Camillo, who sits on the company's board of directors and is this author of Laughing at Wall Street.
The company completed beta testing with multiple hedge funds and financial advisors with USD500m to USD2bn in assets under management.