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On the "mementum" of Meme Stocks

Michele Costola, Matteo Iacopini, Carlo R. M. A. Santagiustina

arXiv 7 Jun 2021 · Econometrics · publishedEconomics Letters (2021) · 1 citations (OpenAlex)

arXiv:2106.03691 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The meme stock phenomenon is yet to be explored. In this note, we provide evidence that these stocks display common stylized facts on the dynamics of price, trading volume, and social media activity. Using a regime-switching cointegration model, we identify the meme stock "mementum" which exhibits a different characterization with respect to other stocks with high volumes of activity (persistent and not) on social media. Understanding these properties helps the investors and market authorities in their decision.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Chew Lian Chua and Sarantis Tsiaplias (2018) A Bayesian approach to modeling time-varying cointegration and cointegrating rank0.51121100%
2J Bradford De Long, Andrei Shleifer, Lawrence H Summers, and Robert… (1990) Noise trader risk in financial markets0.40511100%
3Robert F. Engle and Clive W.J. Granger (1987) Co-integration and error correction: representation, estimation, and testing0.40511100%
4Sren Johansen (1991) Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models0.40511100%
5Gary Koop, Roberto Leon-Gonzalez, and Rodney W Strachan (2011) Bayesian inference in a time varying cointegration model0.40511100%
6Zaghum Umar, Mariya Gubareva, Imran Yousaf, and Shoaib Ali (2021) A tale of company fundamentals vs sentiment driven pricing: The case of GameStop0.40511100%
7Elizabeth Warren (2021) Letter to the Acting Chair of the U.S. Securities and Exchange Commission (SEC)0.40511100%

Showing the top 7 of 7 scored citations.