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StarMine MarketPsych Media Sentiment Model

The MarketPsych Media Sentiment (MMS) model is a stock ranking tool that assigns a daily percentile score from 1 to 100 to over 16,000 global stocks. MMS is a part of the suite of equity models and follows a similar research and implementation methodology.
The model is based on MarketPsych Analytics, a leader in financial media sentiment data. It provides an overall score along with specific Equity, Business, and Management scores.
The MMS scores are designed to forecast the relative share price returns for the following month, with higher-ranked stocks expected to perform better than lower-ranked ones.
Historical performance shows that higher-ranked deciles significantly outperform lower-ranked deciles, with an average top-bottom decile spread of 10.4% annually from 2006 to October 2020, including 12.3% during the out-of-sample period.
The MMS scores are independent of traditional market factors and enhance fundamental models.

FEATURES & BENEFITS

The MarketPsych Media Sentiment (MMS) model by StarMine ranks over 16,000 global stocks daily on a 1-100 percentile scale. This model enhances the StarMine equity models suite and employs a similar approach in both research and application. It leverages data from our MarketPsych Analytics, a leading provider of sentiment data in financial media.
The MMS output provides an overall score along with specific ratings for Equity, Business, and Management. These scores aim to forecast the relative share price performance for the upcoming month, with higher-ranked stocks expected to outperform lower-ranked ones.
Historical analysis reveals that higher-ranked stocks significantly outperform lower-ranked ones, with the top-bottom decile spread averaging 10.4% annually from 2006 to October 2020, including 12.3% in the out-of-sample period. The MMS scores are independent of traditional market factors and serve as a complement to fundamental models.