Sentiment analysis converts written language into signals about attitudes, opinions, or emotional polarity. In financial analysis, it helps interpret qualitative evidence such as earnings-call transcripts, news, and social-media posts. section 1.3.2 section 7.5.3
Use sentiment analysis to:
- Compare sentiment scores across earnings calls. section 1.3.2
- Assess reputation risk from social-media reactions to a legal case. section 7.5.3
- Examine news sentiment after search-trend screening. section 4.4.2
Political and corporate signals
An analyst can score keywords in political speeches or examine sentiment surrounding a company’s lawsuit. These signals may reveal concerns or changing attitudes, but translating them into investment risk remains speculative because historical comparisons are limited and analysts can disagree. section 7.5.3
