We investigate the importance of text analysis for stock price prediction. In particular, we introduce a system that forecasts companies’ stock price changes (UP, DOWN, STAY) in response to financial events reported in 8-K documents. Our results indicate that using text boosts prediction accuracy over 10% (relative) over a strong baseline that incorporates many financially-rooted features. This impact is most important in the short term (i.e., the next day after the financial event) but persists for up to five days.

This paper describes a system for extracting typed dependency parses of English sentences from phrase structure parses. In order to capture inherent relations occurring in corpus texts that can be critical in real-world applications, many NP relations are included in the set of grammatical relations used. We provide a comparison of our system with Minipar and the Link parser. The typed dependency extraction facility described here is integrated in the Stanford Parser, available for download.