Google Trends! Can predict the stock market, but also to know the characteristics of the players Bitcoin

Google's search function has been used to predict flu trends, people's travel plans, and automotive sales price. Research found that now, Google search can also predict next week's stock market will go up or down, and even interested in knowing what type of personality would Bitcoins.

The New York Times reported, Warwick Business School and Boston University, Department of Physics, researchers using the Google search trends Services (Google Trends), found that in one week in which to use a specific search keywords can predict next week the Dow will go up or down .

Keywords can predict stock markets next week:

The researchers tracked from 2004 to 2011 on Google Trends of 98 keywords, including investment-related words, such as debt, equity, combination, the unemployment rate, market, and words such as non-investment lifestyle, art, happy, war, conflict and politics. They found that one particular keyword registration, is the amount of debt, if the word increase, suggesting that the market will be selling, if the word usage reduction was found in the stock market next week will rise slightly.

But the results of this study can not be predicted and unexpected market volatility, such as large sell-off caused panic selling, it is impossible to predict the Institute of keywords. Google Trends and sometimes scientists do not provide accurate information, so there are some situations do not apply.

For example, earlier this year, Google Flu Trends released a report that about nearly 11 percent of Americans infected with the flu, but the US Centers for Disease Control indicates the proportion of Americans have symptoms of only 6%. Google said that could not consider the impact of external factors, such as the media coverage of the flu, as well as increasing the frequency of social media discussion, which will affect the data and statistics.

In 2010, Indiana University, Bloomington, researchers published a similar study, they found that people on Twitter mood predicts the stock market.

Other applications of Google Trends

Because people every move on the network can be summarized into a trend, so Google Trends has become a network marketing tool for many people to develop marketing strategies. For example, in March this year, the real estate transaction platform Auction.com Google $50 million investment, use Google Trends to accurately predict the number of US home sales piece, and a month earlier than the National Association of Real Estate Economy announced time.

The other is an interesting study University of Kentucky researchers used Google search trends in January 2011 to July 2013 data, analysis Bitcoin user personality traits, they will Bitcoin users through key personality traits into four categories, computer programs enthusiast, speculative investors, liberals, cybercriminals, found the computer program enthusiasts, and possibly illegal black market of people online, compare Bitcoin would be interested, liberalism will Driver for Bitcoin interest, but the relevance is limited, and the political and investment motive is almost no correlation.

Anyway, big data analysis applications on the market is already underway type, but the real solution is smart to still rely on human approaches. Google Trends.