Behavioral Finance Indicator at Finanztreff.de
Last week, SentiTrade’s behavioral finance indicator was integrated at Finanztreff.de, one of the most most important German financial news portals. Finanztreff is owned by the vwd group, a leading European provider of customized information, communications and technology solutions for the securities market. It offers innovative solutions for financial service providers, corporates, media and private clients.
By integrating SentiTrade’s widgets, Finanztreff readers may now also review market psychology and quickly determine whether investors are driven by “greed” or “fear”.
SentiTrade’s widgets are already implemented at several other German financial news portals, such as Ad-Hoc news and Trading House. In addition Montel, a leading provider of information for the energy sector in Europe, has recently also integrated our behavioral finance indicator.
In effect, SentiTrade is about to become the defacto authority on behavioral finance for investors active on European markets. Whereas others hold seminars and lectures about behavioral finance theory, we put it into practice. Rather than surveys on what investors potentially would, could or should do next, we provide information on how the market sentiment behaves in real life, and what impact it will have.
Our technology automatically interprets sentiment in DAX 30 financial news about companies included in the Index at Deutsche Börse. In real-time we then categorize information according to positive, neutral or negative and calculate the ratio between bullish and bearish news items. The market sentiment is thereby translated into a firm number value, ranging from 0 to 1. We thereby point out opportunities created by exaggerated pessimism and conversely, warn investors of exuberant optimism.