Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013

First, this research paper tries to study the correlational relationship between search volume queries in Google of Philippine Stock Exchange index-related search terms and the main index of the Philippine stock market., which is the Philippine Stock Exchange index or PSEi. To reduce the biasness of...

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Main Authors: Certeza, Lorenzo Alfonso, Madera, Marianne Kassandra, Nibre, Jirahlyn, Saclolo, Genji
Format: text
Language:English
Published: Animo Repository 2014
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Online Access:https://animorepository.dlsu.edu.ph/etd_bachelors/18528
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Institution: De La Salle University
Language: English
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spelling oai:animorepository.dlsu.edu.ph:etd_bachelors-190412022-03-15T03:24:43Z Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013 Certeza, Lorenzo Alfonso Madera, Marianne Kassandra Nibre, Jirahlyn Saclolo, Genji First, this research paper tries to study the correlational relationship between search volume queries in Google of Philippine Stock Exchange index-related search terms and the main index of the Philippine stock market., which is the Philippine Stock Exchange index or PSEi. To reduce the biasness of the researchers, the researchers have gathered the relevant search terms from a survey that was done for Philippine Stock Exchange investors. Second, we provide thorough details on why such a relationship exists between the selected variables. This means the proposed relationship and a-priori expectations of the model in the study are supplemented by numerous related journals. Third, in coming up with the final model, we used different data analysis methods to check if the proposed model is more or less adequate. The researchers constructed two econometric models, which are bivariate regression model and multivariate regression model using dummy variables, to determine the final model. Lastly, the researchers propose a hypothetical investment strategy based on our final model and check its effectiveness by computing for its cumulative returns of the hypothetical investment strategy is higher that the cumulative returns of a simple buy-and-hold strategy for the same period. That being said, we found out that the search volume of the search term Philippine stock exchange has the best predictive power over PSEi movements with major positive search volume changes having greater impact than major negative search volume changes. Also, the hypothetical investment strategy using Google trends data garnered 291.01% cumulative returns while the buy-and-hold strategy only gained 218.06%, which yields a 72.95% difference. Hence, we conclude that the strategy is indeed effective. 2014-01-01T08:00:00Z text https://animorepository.dlsu.edu.ph/etd_bachelors/18528 Bachelor's Theses English Animo Repository Stocks--Phili[ppines Stock exchanges--Philippines Finance and Financial Management
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
language English
topic Stocks--Phili[ppines
Stock exchanges--Philippines
Finance and Financial Management
spellingShingle Stocks--Phili[ppines
Stock exchanges--Philippines
Finance and Financial Management
Certeza, Lorenzo Alfonso
Madera, Marianne Kassandra
Nibre, Jirahlyn
Saclolo, Genji
Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
description First, this research paper tries to study the correlational relationship between search volume queries in Google of Philippine Stock Exchange index-related search terms and the main index of the Philippine stock market., which is the Philippine Stock Exchange index or PSEi. To reduce the biasness of the researchers, the researchers have gathered the relevant search terms from a survey that was done for Philippine Stock Exchange investors. Second, we provide thorough details on why such a relationship exists between the selected variables. This means the proposed relationship and a-priori expectations of the model in the study are supplemented by numerous related journals. Third, in coming up with the final model, we used different data analysis methods to check if the proposed model is more or less adequate. The researchers constructed two econometric models, which are bivariate regression model and multivariate regression model using dummy variables, to determine the final model. Lastly, the researchers propose a hypothetical investment strategy based on our final model and check its effectiveness by computing for its cumulative returns of the hypothetical investment strategy is higher that the cumulative returns of a simple buy-and-hold strategy for the same period. That being said, we found out that the search volume of the search term Philippine stock exchange has the best predictive power over PSEi movements with major positive search volume changes having greater impact than major negative search volume changes. Also, the hypothetical investment strategy using Google trends data garnered 291.01% cumulative returns while the buy-and-hold strategy only gained 218.06%, which yields a 72.95% difference. Hence, we conclude that the strategy is indeed effective.
format text
author Certeza, Lorenzo Alfonso
Madera, Marianne Kassandra
Nibre, Jirahlyn
Saclolo, Genji
author_facet Certeza, Lorenzo Alfonso
Madera, Marianne Kassandra
Nibre, Jirahlyn
Saclolo, Genji
author_sort Certeza, Lorenzo Alfonso
title Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
title_short Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
title_full Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
title_fullStr Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
title_full_unstemmed Modern information gathering: Using search trends in Google as a predictor of the Philippine Stock Exchange index for the years 2004-2013
title_sort modern information gathering: using search trends in google as a predictor of the philippine stock exchange index for the years 2004-2013
publisher Animo Repository
publishDate 2014
url https://animorepository.dlsu.edu.ph/etd_bachelors/18528
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