

Show HN: -0.7 to -0.9 correlation between the VIX and our sentiment index - seeingfurther
http://elite.kredstreet.com/analysis

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seeingfurther
I should be more clear because there is a crush of data on the page. Look at
the "10 Days Correlations Chart" de-select all but the Bull/VIX. Sorry, still
working on the UI.

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lifeguard
I know what the VIX is, what is the source of social media sentiment? Seems
like a lot of potential for distortion.

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seeingfurther
We built a proprietary natural language processing engine which parses social
media data looking for the specific "attitudes" bullishness and bearishness.

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lifeguard
Ahhh, so proprietary sauce! I don't see any indication of when you have made
changes to your engine or grammar in the graphs. This is a serious distortion
from one perspective.

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seeingfurther
Distortion in what sense?

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lifeguard
The components and weighting of the VIX are fixed and known. But if your
metric is secret, and you make ongoing changes to it, the viewer can not know
when changes were made and their impact.

One can re-play historical stock data and feed it to new algorithms without a
distortion. But unless you are saving all the raw social media data and re-
applying your filters to this historical data, your graphs are distorted.

Also, compared to the VIX, the volatility of the components of social media
sentiment is quite high.

I am sure your system is useful and profitable, even if my criticism is
accurate.

