A Comparative Study of the Relationship between Stock Index and Search Volume for Identifying the Behavioral Pattern Of Stock Market Traders

Document Type : Original Article

Authors

1 Master of Industrial Management (Performance Management), Shahed University, Tehran, Iran

2 Corresponding Author: Assistant Professor, Department of Industrial Management and Entrepreneurship, Shahed University, Tehran, Iran

Abstract

In many countries, including Iran, the stock market index is the basis for decision-making, especially for new importers in the capital market, and is therefore the basis for Internet searches. An investigation on Internet searches can therefore describe the behavioral patterns of market traders and enable them to predict. GoogleTrends (GT)  provides data that can be used to analyze the behavioral patterns of traders In this study, two indicators; "Google Search Volume Index (GSVI)" and "Stock Index" of the selected countries were used. The present study is a combination of descriptive or explanatory method. In the quantitative stage, the statistical population of GT data was extracted and then, a qualitative research method was followed and the data were collected through interviews with the aim of explaining the quantitative sector findings and providing solutions to improve market conditions. The quantitative findings demonstrated high and significant correlation between two indicators of "Google Search Volume Index (GSVI)" and "Stock Index" in Iran and some other countries. While the relationship between these two indicators in some other countries was weak and even inverse. By analyzing the data obtained from the qualitative section, the relationships between these two indicators in studied countries were explained and in order to improve the behavioral conditions of market traders, solutions were presented.

Keywords


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