Erik Cambria
Publications
Beyond Correlation: Refutation-Validated Aspect-Based Sentiment Analysis for Explainable Energy Market Returns
This paper proposes a refutation-validated framework for aspect-based sentiment analysis in financial markets, addressing the limitations of correlational studies that cannot distinguish genuine associations from spurious ones. Using X data for the energy sector, we test whether aspect-level sentiment signals show robust, refutation-validated relationships with equity returns. Our pipeline combines net-ratio scoring with z-normalization, OLS with Newey West HAC errors, and refutation tests including placebo, random common cause, subset stability, and bootstrap. Across six energy tickers, only a few associations survive all checks, while renewables show aspect and horizon specific responses. While not establishing causality, the framework provides statistically robust, directionally interpretable signals, with limited sample size (six stocks, one quarter) constraining generalizability and framing this work as a methodological proof of concept.
The data heat island effect: quantifying the impact of AI data centers in a warming world
The strong and continuous increase of AI-based services leads to the steady proliferation of AI data centres worldwide with the unavoidable escalation of their power consumption. It is unknown how this energy demand for computational purposes will impact the surrounding environment. Here, we focus our attention on the heat dissipation of AI hyperscalers. Taking advantage of land surface temperature measurements acquired by remote sensing platforms over the last decades, we are able to obtain a robust assessment of the temperature increase recorded in the areas surrounding AI data centres globally. We estimate that the land surface temperature increases by 2°C on average after the start of operations of an AI data centre, inducing local microclimate zones, which we call the data heat island effect. We assess the impact on the communities, quantifying that more than 340 million people could be affected by this temperature increase. Our results show that the data heat island effect could have a remarkable influence on communities and regional welfare in the future, hence becoming part of the conversation around environmentally sustainable AI worldwide.