English

Quantifying Semantic Shift in Financial NLP: Robust Metrics for Market Prediction Stability

Computational Finance 2025-10-02 v1

Abstract

Financial news is essential for accurate market prediction, but evolving narratives across macroeconomic regimes introduce semantic and causal drift that weaken model reliability. We present an evaluation framework to quantify robustness in financial NLP under regime shifts. The framework defines four metrics: (1) Financial Causal Attribution Score (FCAS) for alignment with causal cues, (2) Patent Cliff Sensitivity (PCS) for sensitivity to semantic perturbations, (3) Temporal Semantic Volatility (TSV) for drift in latent text representations, and (4) NLI-based Logical Consistency Score (NLICS) for entailment coherence. Applied to LSTM and Transformer models across four economic periods (pre-COVID, COVID, post-COVID, and rate hike), the metrics reveal performance degradation during crises. Semantic volatility and Jensen-Shannon divergence correlate with prediction error. Transformers are more affected by drift, while feature-enhanced variants improve generalisation. A GPT-4 case study confirms that alignment-aware models better preserve causal and logical consistency. The framework supports auditability, stress testing, and adaptive retraining in financial AI systems.

Keywords

Cite

@article{arxiv.2510.00205,
  title  = {Quantifying Semantic Shift in Financial NLP: Robust Metrics for Market Prediction Stability},
  author = {Zhongtian Sun and Chenghao Xiao and Anoushka Harit and Jongmin Yu},
  journal= {arXiv preprint arXiv:2510.00205},
  year   = {2025}
}

Comments

The 6th ACM International Conference on Al in Finance

R2 v1 2026-07-01T06:08:53.479Z