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However, little work has investigated how to present the sentiment information (as extracted from reviews) on the user interface, especially in the interface of supporting users to compare products.
The results indicated that the sentiment information is an important forecasting determinant of financial performance and, thus, can be used to support the decision-making process of corporate stakeholders (Hajek, Olej, & Myskova, 2014).
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In addition, we investigate whether the better performance of the 'sentiment strategy' can be attributed to the use of sentiment information or to the COP approach.
For a derivation of the algorithm used to make word shift graphs while separating the frequency and sentiment information, we refer the reader to Equations 2 and 3 in [14].
It is very important to compare the sentiment strategy against the initial market strategy so as to assess whether sentiment information improves on the results of a strategy that does not consider the sentiment effect.
The intuition of this procedure is to apply the COP method using randomly permuted sentiment information.
The fact that the sentiment strategy also outperforms the initial market strategy, which does not use sentiment information, is an initial indication that investor sentiment carries relevant information for portfolio optimization.
As the sentiment-based strategy outperforms the initial market strategy that does not include sentiment information, this provides further empirical evidence that sentiment contains useful information for portfolio optimization.
Employing the approach of Copula Opinion Pooling, we explore how sentiment information regarding international stock markets can be directly incorporated into the portfolio optimization procedure.
As a result, the sentiment score information for positive word tokens is showing in Figure 4(a).
Sentiment categorization is essentially a classification problem, where features that contain opinions or sentiment information should be identified before the classification.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com