Music and the market: Song and stock volatility

Philip Maymin

doi:10.1016/j.najef.2011.11.004

Music and the market: Song and stock volatility

Philip Maymin

Finance and Risk Engineering

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	70-85
Number of pages	16
Journal	North American Journal of Economics and Finance
Volume	23
Issue number	1
DOIs	https://doi.org/10.1016/j.najef.2011.11.004
State	Published - Jan 2012

Keywords

Behavioral
Complexity
Music
Strategy
Volatility

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.najef.2011.11.004

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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.",

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Music and the market: Song and stock volatility

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

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