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Investment Analysis is a cornerstone of the Financial Services industry. The rapid integration of advanced machine learning techniques, particularly Large Language Models (LLMs), offers opportunities to enhance the equity rating process.…

Machine Learning · Computer Science 2024-11-05 Kassiani Papasotiriou , Srijan Sood , Shayleen Reynolds , Tucker Balch

Mining financial text documents and understanding the sentiments of individual investors, institutions and markets is an important and challenging problem in the literature. Current approaches to mine sentiments from financial texts largely…

Information Retrieval · Computer Science 2018-11-28 Srikumar Krishnamoorthy

The goal of stock trend prediction is to forecast future market movements for informed investment decisions. Existing methods mostly focus on predicting stock trends with supervised models trained on extensive annotated data. However, human…

Artificial Intelligence · Computer Science 2024-07-15 Yiqi Deng , Xingwei He , Jiahao Hu , Siu-Ming Yiu

Identifying and mitigating safety risks is paramount in a number of industries. In addition to guidelines and best practices, many industries already have safety management systems (SMSs) designed to monitor and reinforce good safety…

Applications · Statistics 2022-05-03 Ashutosh Tewari , Antonio R. Paiva

This paper presents a novel hierarchical framework for portfolio optimization, integrating lightweight Large Language Models (LLMs) with Deep Reinforcement Learning (DRL) to combine sentiment signals from financial news with traditional…

Portfolio Management · Quantitative Finance 2025-07-25 Benjamin Coriat , Eric Benhamou

The integration of Artificial Intelligence (AI) techniques, particularly large language models (LLMs), in finance has garnered increasing academic attention. Despite progress, existing studies predominantly focus on tasks like financial…

Recent advancements in Large Language Models (LLMs) have the potential to transform financial analytics by integrating numerical and textual data. However, challenges such as insufficient context when fusing multimodal information and the…

Computational Finance · Quantitative Finance 2024-11-14 Hoyoung Lee , Youngsoo Choi , Yuhee Kwon

The financial domain presents a complex environment for stock market prediction, characterized by volatile patterns and the influence of multifaceted data sources. Traditional models have leveraged either Convolutional Neural Networks (CNN)…

Statistical Finance · Quantitative Finance 2025-04-08 Arya Chakraborty , Auhona Basu

Accurate forecasting of downside risks to economic growth is critically important for policymakers and financial institutions, particularly in the wake of recent economic crises. This paper extends the Growth-at-Risk (GaR) approach by…

Econometrics · Economics 2025-11-10 Cansu Isler

This study aims to evaluate the sentiment of financial texts using large language models~(LLMs) and to empirically determine whether LLMs exhibit company-specific biases in sentiment analysis. Specifically, we examine the impact of general…

Computational Finance · Quantitative Finance 2025-08-26 Kei Nakagawa , Masanori Hirano , Yugo Fujimoto

The advent of Large Language Models (LLMs) has provided unprecedented capabilities for analyzing unstructured text data. However, deploying these models as reliable, robust, and scalable classifiers in production environments presents…

Computation and Language · Computer Science 2025-08-25 Doohee You , Andy Parisi , Zach Vander Velden , Lara Dantas Inojosa

Financial sentiment analysis is crucial for understanding the influence of news on stock prices. Recently, large language models (LLMs) have been widely adopted for this purpose due to their advanced text analysis capabilities. However,…

Computation and Language · Computer Science 2025-06-24 Yixuan Liang , Yuncong Liu , Neng Wang , Hongyang Yang , Boyu Zhang , Christina Dan Wang

This paper presents a novel hierarchical framework for portfolio optimization, integrating lightweight Large Language Models (LLMs) with Deep Reinforcement Learning (DRL) to combine sentiment signals from financial news with traditional…

Computation and Language · Computer Science 2025-08-01 Baptiste Lefort , Eric Benhamou , Beatrice Guez , Jean-Jacques Ohana , Ethan Setrouk , Alban Etienne

One of the pillars to build a country's economy is the stock market. Over the years, people are investing in stock markets to earn as much profit as possible from the amount of money that they possess. Hence, it is vital to have a…

Statistical Finance · Quantitative Finance 2022-03-17 Ishu Gupta , Tarun Kumar Madan , Sukhman Singh , Ashutosh Kumar Singh

Financial sentiment analysis (FSA) has attracted significant attention, and recent studies increasingly explore large language models (LLMs) for this field. Yet most work evaluates only classification metrics, leaving unclear whether…

Computational Engineering, Finance, and Science · Computer Science 2025-09-17 Zijian Zhang , Rong Fu , Yangfan He , Xinze Shen , Yanlong Wang , Xiaojing Du , Haochen You , Jiazhao Shi , Simon Fong

Dynamic hedging strategies are essential for effective risk management in derivatives markets, where volatility and market sentiment can greatly impact performance. This paper introduces a novel framework that leverages large language…

Computation and Language · Computer Science 2025-04-08 Jie Yang , Yiqiu Tang , Yongjie Li , Lihua Zhang , Haoran Zhang

MarketSenseAI is a novel framework for holistic stock analysis which leverages Large Language Models (LLMs) to process financial news, historical prices, company fundamentals and the macroeconomic environment to support decision making in…

Computational Finance · Quantitative Finance 2025-10-06 George Fatouros , Kostas Metaxas , John Soldatos , Manos Karathanassis

The innovation of the study is that the deep learning method and sentiment analysis are integrated in traditional business model analysis and forecasting, and the research subject is TSMC for industry trend prediction of semiconductor…

Machine Learning · Computer Science 2025-11-20 Wei-hsiang Yen , Lyn Chao-ling Chen

This paper introduces a methodology leveraging Large Language Models (LLMs) for sector-level portfolio allocation through systematic analysis of macroeconomic conditions and market sentiment. Our framework emphasizes top-down sector…

Computational Engineering, Finance, and Science · Computer Science 2025-04-11 Ryan Quek Wei Heng , Edoardo Vittori , Keane Ong , Rui Mao , Erik Cambria , Gianmarco Mengaldo

The application of Machine learning to finance has become a familiar approach, even more so in stock market forecasting. The stock market is highly volatile, and huge amounts of data are generated every minute globally. The extraction of…

Computation and Language · Computer Science 2024-01-03 Sai Akash Bathini , Dagli Cihan
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