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Twitter matters for metaverse stocks amid economic uncertainty

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  • Aysan, Ahmet Faruk
  • Batten, Jonathan A.
  • Gozgor, Giray
  • Khalfaoui, Rabeh
  • Nanaeva, Zhamal

Abstract

The study examines the relationship between economic uncertainty, as measured by the Twitter-based economic uncertainty index (TEU), and Metaverse stocks across different time-frequency domains. By employing Wavelet Local Multiple Correlation analysis, we identify a substantial and statistically significant correlation between TEU and the Metaverse stock market across all time horizons examined. The positive correlation is confirmed when two alternative measures of economic uncertainty: crude oil and gold volatility, are included. The results highlight the importance of considering real-world economic uncertainty in decision-making processes involving virtual reality environments.

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  • Aysan, Ahmet Faruk & Batten, Jonathan A. & Gozgor, Giray & Khalfaoui, Rabeh & Nanaeva, Zhamal, 2023. "Twitter matters for metaverse stocks amid economic uncertainty," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004889
    DOI: 10.1016/j.frl.2023.104116
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    Cited by:

    1. Aysan, Ahmet Faruk & Batten, Jonathan & Gozgor, Giray & Khalfaoui, Rabeh & Nanaeva, Zhamal, 2024. "Metaverse and financial markets: A quantile-time-frequency connectedness analysis," Research in International Business and Finance, Elsevier, vol. 72(PB).
    2. Aharon, David Y. & Alon, Ilan & Vakhromov, Oleg, 2024. "Metaverse tokens or metaverse stocks – Who’s the boss?," Research in International Business and Finance, Elsevier, vol. 69(C).
    3. Kropiński, Paweł & Bosek, Bartłomiej & Pudo, Mikołaj, 2024. "State ownership, probability of informed trading, and profitability potential: Evidence from the Warsaw Stock Exchange," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    4. Zeng, Hongjun & Abedin, Mohammad Zoynul & Zhou, Xiangjing & Lu, Ran, 2024. "Measuring the extreme linkages and time-frequency co-movements among artificial intelligence and clean energy indices," International Review of Financial Analysis, Elsevier, vol. 92(C).
    5. Emiliya James & Parthajit Kayal & Moinak Maiti & G. Balasubramanian, 2024. "A Study on the Hedging and Safe-Haven Features of Non-fungible Tokens Segments," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(4), pages 495-502, December.
    6. Ghosh, Indranil & Alfaro-Cortés, Esteban & Gámez, Matías & García-Rubio, Noelia, 2024. "Reflections of public perception of Russia-Ukraine conflict and Metaverse on the financial outlook of Metaverse coins: Fresh evidence from Reddit sentiment analysis," International Review of Financial Analysis, Elsevier, vol. 93(C).
    7. Abakah, Emmanuel Joel Aikins & Wali Ullah, G M & Abdullah, Mohammad & Lee, Chi-Chuan & Sulong, Zunaidah, 2024. "Correlation structure between fiat currencies and blockchain assets," Finance Research Letters, Elsevier, vol. 62(PA).

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