Happiness and Gold Prices
(2020) In Finance Research Letters 35(July 2020).- Abstract
We use the Twitter-based Hedonometer happiness index to study the link between happiness and gold price changes. We find no significant correlation between the two when we look at correlations across the entire distributions. However, turning to an extreme value theory (EVT) modeling of the tails of the non-normally distributed happiness distribution we find that during particularly depressing days the gold price often goes up. In a sense, gold is found to serve as a happiness-related safe haven, i.e. as a hedge against extreme unhappiness.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/576e0929-b8c2-4523-bba7-8d8188cb7a47
- author
- Byström, Hans LU
- organization
- publishing date
- 2020-05-26
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- extreme value theory, gold price, happiness, Hedonometer, tail, Twitter
- in
- Finance Research Letters
- volume
- 35
- issue
- July 2020
- article number
- 101599
- publisher
- Elsevier
- external identifiers
-
- scopus:85085651864
- ISSN
- 1544-6123
- DOI
- 10.1016/j.frl.2020.101599
- language
- English
- LU publication?
- yes
- id
- 576e0929-b8c2-4523-bba7-8d8188cb7a47
- date added to LUP
- 2020-06-25 16:43:44
- date last changed
- 2022-04-18 23:09:58
@article{576e0929-b8c2-4523-bba7-8d8188cb7a47,
abstract = {{<p>We use the Twitter-based Hedonometer happiness index to study the link between happiness and gold price changes. We find no significant correlation between the two when we look at correlations across the entire distributions. However, turning to an extreme value theory (EVT) modeling of the tails of the non-normally distributed happiness distribution we find that during particularly depressing days the gold price often goes up. In a sense, gold is found to serve as a happiness-related safe haven, i.e. as a hedge against extreme unhappiness.</p>}},
author = {{Byström, Hans}},
issn = {{1544-6123}},
keywords = {{extreme value theory; gold price; happiness; Hedonometer; tail; Twitter}},
language = {{eng}},
month = {{05}},
number = {{July 2020}},
publisher = {{Elsevier}},
series = {{Finance Research Letters}},
title = {{Happiness and Gold Prices}},
url = {{http://dx.doi.org/10.1016/j.frl.2020.101599}},
doi = {{10.1016/j.frl.2020.101599}},
volume = {{35}},
year = {{2020}},
}