Music and the Market: Song and Stock Volatility

29 Pages Posted: 5 Nov 2008 Last revised: 12 Oct 2011

Philip Maymin

University of Bridgeport - School of Business; Vantage Sports

Date Written: October 11, 2011

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 US 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.

Keywords: music, complexity, volatility, billboard, strategy, behavioral

JEL Classification: G12

Suggested Citation

Maymin, Philip, Music and the Market: Song and Stock Volatility (October 11, 2011). Available at SSRN: https://ssrn.com/abstract=1295584 or http://dx.doi.org/10.2139/ssrn.1295584

Philip Maymin (Contact Author)

University of Bridgeport - School of Business ( email )

126 Park Avenue
Bridgeport, CT 06601
United States

Vantage Sports ( email )

United States

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