The study, published in August 2021, looked at positivity in the songs of the daily top 200 in 40 countries as a measure of mood in its citizens.
It found that an increase in positive music sentiment was associated to a higher return in the stock market for that week and a lower return for the next week.
Returns are measured in basis points, a percentage change in price of stocks.
The study introduces the idea that the kind of music investors are listening to at a given moment is a reflection of their mood and influences what stocks they choose to trade. It acknowledges that it is making the assumption that people listen to music that reflects the mood they are currently experiencing, rather than listening to change their mood.