Reading behind the tweets: A sentiment Clustering Approach

Abstract

Market sentiment influence crude oil future prices in direct or indirect way. In order to measure the polarity of market sentiment various techniques has been deployed by industry and academia alike. This pilot study successfully introduced two instruments, namely topic modeling and Sentiment clustering, to unearth the prevailing sentiments behind crude oil future pricesThree main conclusions that can be drawn from empirical results are. First, the K-Means clustering algorithm is an effective technique for sentiment clustering compared to Louveian and MDS clustering techniques. Second sentiment polarity-related positive sentiments have shown more variations in comparison to neutral and negative sentiments. Third It is possible to extract the keywords related to essential factors influencing crude oil prices using the LDA technique under topic modeling