How do you calculate the correlation between the stock price and the media sentiment measures from Heads UpTM?
We look at the highs and lows and compare the values with the previous closing price. For instance, if the news came after 4:00 PM EST or before 9:30 AM EST we look at the highs and lows during the next Regular trading session. If we rated the stock a thumbs down and the difference between the low and previous closing price is negative we consider that good correlation. Similarly, if we rated a stock thumbs up and the difference between the high and the previous closing price is greater than zero, we consider that to be a positive correlation.
