Browsing by Author "Jones, Colin"

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    Reddit Data in Quantitative Financial Models
    Malhotra, Rohan; Jones, Colin (2025-02-26)
    The rise of alternative data has transformed the landscape of quantitative finance, with social media platforms like Reddit emerging as crucial data sources. This thesis examines the integration of Reddit data into financial models, focusing on its evolution following the GameStop and AMC short squeezes of 2021. The analysis spans methodologies, the impact on asset pricing, and ethical considerations, drawing from 20–40 scholarly articles. Key findings highlight how retail investor sentiment, captured via subreddits such as r/WallStreetBets, has reshaped market dynamics and introduced predictive tools for volatility and trading strategies. However, challenges such as data noise and ethical dilemmas persist. This thesis identifies gaps in current research, emphasizing the potential for Reddit data to inform future financial modeling practices.