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Closingbell Crowdsourced Stock Ratings

Authors: Scott Weiner; Vinesh Jha;

Closingbell Crowdsourced Stock Ratings

Abstract

ClosingBell is an app-based collaborative stock trading platform which allows its users to connect their online brokerage accounts and share their trades and portfolios with one another. Users, who are retail traders, can also share their trade ideas, or ratings, with the ClosingBell community. The ClosingBell crowdsourced stock ratings dataset includes all such Buy and Sell ratings issued by the community’s members since 2014, currently over 47,000 ratings from 2,800 contributors. In this paper we examine the predictive power of the ClosingBell ratings, and find that the ratings are predictive of stock prices over a one to twenty trading day period. The returns of portfolios built using the ratings exhibit dollar neutral returns of 12% with a Sharpe ratio of 1.0. These returns are robust to trading costs and are not explained by common risk factors. The ClosingBell data represents a unique and powerful source of crowdsourced alpha which can improve systematic sentiment strategies.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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