Question
Question 1: Analysis of Google Trends use Google Trends to answer the following questions. Here is google trends link (https://trends.google.com/trends/explore) (a) Use the search volume
Question 1: Analysis of Google Trends
use Google Trends to answer the following questions.
Here is google trends link (https://trends.google.com/trends/explore)
(a) Use the search volume related to two keywords, "bullish" and "bearish" compare the two market trends in Canada over the past 12 months. Copy and paste the graph as part of the assignment. Comment on the relationship between the two search volumes.
(b) Based on the trends depicted in the graph in part(a) would you consider the market to be more bullish or more bearish? Explain.
(c) Now let us focus on the bullish market. In the bullish case we would expect the following keywords to dominate in terms of search volumes: "what stocks to buy", "top stocks", "buy stocks" and "how to invest". Use these four keywords to assess to asses trends in the search volumes. Copy and paste the graph as part of your assignment.
(d) Would you expect the trends you found in part (c) to be correlated with the trend in the stock market index (e.g. the TSE composite) in Canada? What would you expect the correlation to be (i.e. positive or negative)?
(e) Would you consider the volume search data obtained in parts (a) and (c) to be perfect measures of investor sentiment? Briefly explain.
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