0395341 20240103202847.220130919235959.9 000324583200003 10.1038/srep02713 5 s. P cav_un_epca*03865942045-232232713 (2013)1-5Nature Publishing Group Google Trends diversification portfolio cav_un_auth*0256902 Krištoufek Ladislav Ekonometrie Department of Econometrics E E UTIA-B Department of Econometrics Ústav teorie informace a automatizace AV ČR, v. v. i. http://library.utia.cas.cz/separaty/2013/E/kristoufek-can google trends search queries contribute to risk diversification.pdf GA402/09/0965 GA ČR cav_un_auth*0253176 Portfolio diversification and active risk management are essential parts of financial analysis which became even more crucial (and questioned) during and after the years of the Global Financial Crisis. We propose a novel approach to portfolio diversification using the information of searched items on Google Trends. The diversification is based on an idea that popularity of a stock measured by search queries is correlated with the stock riskiness. We penalize the popular stocks by assigning them lower portfolio weights and we bring forward the less popular, or peripheral, stocks to decrease the total riskiness of the portfolio. Our results indicate that such strategy dominates both the benchmark index and the uniformly weighted portfolio both in-sample and out-of-sample. 2014 AH 1 RVO:67985556 http://hdl.handle.net/11104/0223795 MULTIDISCIPLINARYSCIENCES 5.078 0.823 1.IV 0.03624 2.174 7118 2484 1.998 ScienceCitationIndexExpanded Q1 82.411 91.818 Q1 Q2 2013 000324583200003 WOS cav_un_epca*0386594 Scientific Reports 2045-2322 2045-2322 Roč. 3 č. 2713 2013 1 5 Nature Publishing Group