Simple idea behind:

REIRE (U.S.) is powered by state-of-the-art semantic embedding technics that transform each news article into a 4096-dimensional vector representation.

A purely rational market should react the same way to a “original news article” and to its "emotion-neutral version”, as long as the underlying information is identical. By using AI and machine learning to learn from both versions of the news and compare their explanatory power for current real-estate dynamics, RCIRE quantifies how consistent real estate market reactions to the “original” and “neutralized” versions of the same news are, as a proxy of current market’s degree of rationality. The closer the index is to one, the more rational the U.S. real estate market behaves; the larger the gap, the stronger the influence of emotional framing.