Google Trends and quantifying trading behavior?

In 2013, research revealed that Google trends data may be used to determine large market moves (Preis et al., 2013).
Another investigation has shown that the number of clicks on search results stemming from a given country correlates with the amount of investment in that country (Montria et al., 2010).

Google Trends data used to determine how many searches n(t – 1) have been carried out for a specific search term such as debt in week.

Let’s look at closer to the method:

Google Trends services is used: on 10 April 2011, 17 April 2011, and 24 April 2011.

Figure 1

The graph illustrates Dow Jones Industrial Average (DJIA) trading change between the years 2004 to 2011. The color code changes according to the relative search volume changes for the search term debt, with Δt = 3 weeks.


Preis, T., Moat, H. S., & Stanley, H. E. (2013). Quantifying trading behavior in financial markets using Google Trends. Scientific reports3, 1684.

Mondria, J., Wu, T. & Zhang, Y. The determinants of international investment and attention allocation: Using internet search query data. Journal of International Economics 82, 85–95 (2010).

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