Relationship Between Japanese Stock Market Behavior and Category-Based News

This study investigates the relationship between news delivered via the QUICK terminal and stock market behavior. Specifically, through an evaluation of the performance of investment strategies that utilize news index created based on its scores indicating positive or negative sentiment, we examine...

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Main Authors: Jun Nakayama, Daisuke Yokouchi
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/3/50
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author Jun Nakayama
Daisuke Yokouchi
author_facet Jun Nakayama
Daisuke Yokouchi
author_sort Jun Nakayama
collection DOAJ
description This study investigates the relationship between news delivered via the QUICK terminal and stock market behavior. Specifically, through an evaluation of the performance of investment strategies that utilize news index created based on its scores indicating positive or negative sentiment, we examine whether index construction that takes into account the content of individual news items contributes to improved predictive power with regard to stock prices. We verify the performance of this investment strategy based on signal indicators derived from news indices focusing on short-term trends using time-series decomposition. After refining the news indicators based on news categories, we observe an improvement in the strategy’s performance, demonstrating that the value of news varies across different categories and the importance of considering the content and meaning of text news.
format Article
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institution DOAJ
issn 2227-9091
language English
publishDate 2025-03-01
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series Risks
spelling doaj-art-7d172e87fe854bd288367f33704f81502025-08-20T02:43:02ZengMDPI AGRisks2227-90912025-03-011335010.3390/risks13030050Relationship Between Japanese Stock Market Behavior and Category-Based NewsJun Nakayama0Daisuke Yokouchi1Financial Strategy Program, Hitotsubashi University Business School, Tokyo 101-8439, JapanFinancial Strategy Program, Hitotsubashi University Business School, Tokyo 101-8439, JapanThis study investigates the relationship between news delivered via the QUICK terminal and stock market behavior. Specifically, through an evaluation of the performance of investment strategies that utilize news index created based on its scores indicating positive or negative sentiment, we examine whether index construction that takes into account the content of individual news items contributes to improved predictive power with regard to stock prices. We verify the performance of this investment strategy based on signal indicators derived from news indices focusing on short-term trends using time-series decomposition. After refining the news indicators based on news categories, we observe an improvement in the strategy’s performance, demonstrating that the value of news varies across different categories and the importance of considering the content and meaning of text news.https://www.mdpi.com/2227-9091/13/3/50newstext miningtime-series decompositioninvestment strategy
spellingShingle Jun Nakayama
Daisuke Yokouchi
Relationship Between Japanese Stock Market Behavior and Category-Based News
Risks
news
text mining
time-series decomposition
investment strategy
title Relationship Between Japanese Stock Market Behavior and Category-Based News
title_full Relationship Between Japanese Stock Market Behavior and Category-Based News
title_fullStr Relationship Between Japanese Stock Market Behavior and Category-Based News
title_full_unstemmed Relationship Between Japanese Stock Market Behavior and Category-Based News
title_short Relationship Between Japanese Stock Market Behavior and Category-Based News
title_sort relationship between japanese stock market behavior and category based news
topic news
text mining
time-series decomposition
investment strategy
url https://www.mdpi.com/2227-9091/13/3/50
work_keys_str_mv AT junnakayama relationshipbetweenjapanesestockmarketbehaviorandcategorybasednews
AT daisukeyokouchi relationshipbetweenjapanesestockmarketbehaviorandcategorybasednews