analyze_news_impact
Correlate news articles with stock price movements to identify which events have significant impact. Measure short, medium, and long-term effects with impact scores and direction.
Instructions
News Impact Analysis | Price Movement Correlation | Event-Driven Trading - Analyze how news events affect stock prices over time. Correlates news articles with price movements to identify which news has the most significant impact on stock performance.
Key Metrics:
Short-Term Impact (1 Hour): Immediate price reaction to news
Medium-Term Impact (1 Day): Daily price movement after news
Long-Term Impact (1 Week): Extended price trend following news
Impact Score: 0-100 score indicating magnitude of price movement
Impact Direction: Positive, negative, or neutral price impact
Correlation Strength: Overall news-price correlation (strong/moderate/weak/none)
Impact Classification:
Significant: ≥5% price movement (Score: 70-100)
Moderate: 2-5% price movement (Score: 40-69)
Minor: 0.5-2% price movement (Score: 15-39)
Negligible: <0.5% price movement (Score: 0-14)
Use Cases:
"How does news affect Tesla stock price?"
"Which news had the biggest impact on AAPL?"
"Analyze news correlation for Microsoft"
"Show me price movements after earnings news"
"What news caused the biggest price drop for NVDA?"
Why It Matters: News impact analysis helps:
Event-Driven Trading: Identify patterns in news-driven price movements
Risk Management: Understand how different news types affect volatility
Trading Strategy: Time entry/exit based on news impact patterns
Market Sentiment: Gauge how market reacts to different news categories
Analysis Insights:
Aggregate statistics across all news events
Most positive and negative impact events
Correlation between news frequency and price volatility
Category-specific impact patterns (earnings, M&A, analyst ratings, etc.)
Important Notes:
Correlation does not imply causation - other factors may influence price
Market-wide events can affect all stocks simultaneously
Low-volume stocks may show exaggerated price impacts
Some news may be priced in before official publication
Returns: Individual news impacts, aggregate statistics, top impacts, correlation strength, and event analysis.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| symbol | Yes | Stock ticker symbol to analyze news impact for (e.g., "AAPL", "TSLA"). The analysis will cover recent news and corresponding price movements. | |
| days_back | No | Number of days to look back for news analysis (default: 30, max: 90). Longer periods provide more data but may include less relevant events. | |
| news_limit | No | Maximum number of news articles to analyze (default: 20, max: 50). More articles provide better statistical analysis but take longer to process. |