Cross-Source Agreement
In short
How well news and social sentiment agree — high agreement = stronger signal
When both news AND social media are positive (or both negative), that agreement makes the signal much stronger than if they disagree. Like getting the same weather forecast from two independent meteorologists.
Cross-source agreement measures the correlation between sentiment signals from different sources (news vs social, different news outlets). High agreement amplifies the signal confidence. Divergence between sources may indicate the signal is noisy or that different investor groups have different views.
Formula
Agreement Score = 1 - |News Sentiment - Social Sentiment|Related concepts
- News Sentiment — News sentiment combines the emotional tone of recent news articles about a company. Lots of positive headlines = positive sentiment. A string of bad news = negative. It can signal upcoming price moves before they happen.
- Social Sentiment — Social sentiment tracks what regular investors are saying on Twitter, Reddit, and forums. When retail traders go wild about a stock (think GameStop), social sentiment spikes. High social sentiment with price divergence can signal a squeeze or crash.
- Sentiment Score — The sentiment score blends news and social media signals into one number. Think of it as a thermometer for how the market 'feels' about a stock right now. Positive = optimistic; negative = pessimistic.