Alpha generation with Twitter’s daily momentum

This thesis does not set out to focus on the dynamics relationship between Twitter and stock prices, but instead tries to understand if using relevant information extracted from tweets has the power to increase investors’ stock picking ability, and generate alpha in portfolio’s choice relative to a benchmark. Despite the short period analyzed, it gives promising results that the sentiment analysis performed by Social Market Analytics Inc. applied to an equity portfolio, is able to generate positive abnormal returns, statistically significant in and out of sample.

Distributed solar micro generation

Taking into account the fact that the sun’s radiation is estimated to be enough to cover 10.000 times the world’s total energy needs (BRAKMANN & ARINGHOFF, 2003), it is difficult to understand how solar photovoltaic systems (PV) are still such a small part of the energy source matrix across the globe. Though there is an ongoing debate as to whether energy consumption leads to economic growth or whether it is the other way around, the two variables appear correlated and it is clear that ensuring the availability of energy to match a country’s growth targets is one of the prime concerns for any government. The topic of centralized vs distributed electricity generation is also approached, especially in what regards the latter fit to developing countries needs, namely the lack of investment capabilities and infrastructure, scattered population, and other factors. Finally, Brazil’s case is reviewed, showing that the current cost of electricity from the grid versus the cost from PV solutions still places an investment of this nature with 9 to 16 years to reach breakeven (from a 25 year panel lifespan), which is too high compared to the required 4 years for most Brazilians. Still, recently passed legislation opened the door, even if unknowingly, to the development of co-owned solar farms, which could reduce the implementation costs by as much as 20% and hence reduce the number of years to breakeven by 3 years.