Music and the market: Song and stock volatility

Philip Maymin

Research output: Contribution to journalArticle

Abstract

Popular music may presage market conditions because people contemplating complex future economic behavior prefer simpler music, and vice versa. In comparing the annual average beat variance of the songs in the U.S. Billboard Top 100 since its inception in 1958 through 2007 to the standard deviation of returns of the S&P 500 for the same or the subsequent year, a significant negative correlation is observed. Furthermore, the beat variance appears able to predict future market volatility, producing 2.5 volatility points of profit per year on average.

Original languageEnglish (US)
Pages (from-to)70-85
Number of pages16
JournalNorth American Journal of Economics and Finance
Volume23
Issue number1
DOIs
StatePublished - Jan 2012

Fingerprint

Market volatility
Stock volatility
Music
Market conditions
Economic behaviour
Standard deviation
Profit

Keywords

  • Behavioral
  • Complexity
  • Music
  • Strategy
  • Volatility

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Music and the market : Song and stock volatility. / Maymin, Philip.

In: North American Journal of Economics and Finance, Vol. 23, No. 1, 01.2012, p. 70-85.

Research output: Contribution to journalArticle

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