Anticipating the Ford Downgrade – Example Application of Contextual Sentiment Analysis

Moody’s recent downgrade of Ford (Ticker: F) on Monday, September 9th presents an opportunity to explore whether the aggregated information contained in published financial and economics-related articles could have warned us of the strong potential for downgrade prior to Moody’s announcement.

To answer this question, we did an analysis of aggregated contextual sentiment on a corpus of 72 million financial and economic-related documents published over the past 5 years. These documents include daily news articles, company analyses, earnings call transcripts, government filings and other related documents.

The results indicate that the early warning signs of the Moody’s downgrade could indeed be gleaned through an intelligently guided traversal through a large corpus of published financial documents and articles as explained in this paper.

To read the full piece, click here.