| dc.description.abstract | Recently, the r/wallstreetbets subreddit has sent shock waves through the
financial industry. The subreddit has been the subject of widespread discussion
regarding the unintuitive price actions caused by the platform activity. This thesis
examines recent changes in the WallStreetBets (WSB) phenomenon, particularly
after the meme stock craze in 2021. In addition, it examines relationships between
WSB activity and stock data and whether it is possible to utilize findings in a
trading algorithm producing abnormal returns. The results identify the meme stock
craze as an outlier period, where in the following period the impact of WSB activity
returns to normal levels corresponding to the pre-2021 period. In addition, the
results demonstrate a significant relationship between WSB activity and stock data,
particularly for the mentions activity on the subreddit. Moreover, this thesis finds a
profitable strategy adjusted for biases by maximizing the Sharpe ratio, which also
provides a strong abnormal return. In a broader sense, its results are promising in
relation to the utilization of big data and quantitative methods in analyzing social
media and applying the findings to a financial strategy. | en_US |
