Published in:
Volume 23, Issue 1, January 2012, Pages 70–85
Philip Maymin, NYU Poly - Department of Finance and Risk Engineering
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.
Highlights
► 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.Here's the 29 page PDF
I'm not sure if it's pertinent but this was our theme song from Sept. 2008 to Mar. 2009:
The tempo is 163 - 165 beats per minute, putting it somewhere between allegro vivace and presto (lively and fast to very, very fast)
