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It can be defined as any set of circumstances that pose a risk to the steadiness of the financial system and have the potential to provoke a monetary crisis 27 We hypothesise that the cohesiveness of financial news partially reflects this systemic risk. Motivated by latest monetary crises, important research efforts have been put into finding out contagion effects and herding behaviour in financial markets.

Figure 3 shows probably the most frequent entities in each of the semantic partitions as decided based on the information corpus collected over the analysed interval. A lot much less has been stated relating to the influence of economic information on financial markets. To satisfy the first prerequisite, in our evaluation, we rely on financial information paperwork which might be extracted by a novel text-stream processing pipeline, NewStream ( ), from a lot of Net sources.

To assess the NCI’s utility as a financial market indicator, we use correlation analysis and Granger causality tests in opposition to the set of various financial market indicators. The NCI-financial correlations with financial market volatility indices are a lot stronger in comparison with the GSQ classes correlations with volatility measures with R < 0.3.="" in="" distinction="" with="" the="" nci-monetary,="" the="" gsq="" classes="" exhibit="" stronger="" correlations="" with="" inventory="" market="" volumes="" (zero.three="">< r="">< zero.four).>