7 plots the FPE metric as a perform of the number of news information for these 206 shares. The high quality of our regression exercise could be further assessed by comparing the results with those obtained utilizing reference nulls. Specifically, we swap the news associated with different companies.
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However, as casual statement signifies, each news document has different meaning to investors and thus different impression on prices, in order that just counting the total number of news data for a particular interval wouldn’t work properly. One way to circumvent the latter downside might be to make use of very brief time intervals in order to attenuate attribution errors.
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