januari 26, 2010

Google News - the news aggregator!

I am not only interested in credit risk and credit derivatives but my research also focuses on financial stability, performance measures, commercial microfinance, and market behavior in general. Moreover, I have also written the first (as far as I know) academic paper on the use of news aggregators in finance. In the paper

Byström, H., (2009), News Aggregators, Volatility and the Stock Market, Economics Bulletin 29 (4), 2009, pp 2679-2688.

I discuss how news aggregators can be used in a financial context. More exactly, I show that the number of news hits in Google News containing the phrase “stock market” or “stock market crash” is significantly related to stock market volatility! That is, news and volatility seem to be related to each other, as expected. See the link to the paper here.

News aggregators such as Google News are really nice tools to swiftly collect news on a certain topic onto one single web page. My application is just an example and I think there are many other avenues where news aggregators could be useful. In research as well as in trading. Here is the link! Google News