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In an era where financial markets are heavily influenced by many static and dynamic factors, it has become increasingly critical to carefully integrate diverse data sources with machine learning for accurate stock price prediction. This…

Statistical Finance · Quantitative Finance 2025-03-10 Furkan Karadaş , Bahaeddin Eravcı , Ahmet Murat Özbayoğlu

Time-series forecasting in real-world applications such as finance and energy often faces challenges due to limited training data and complex, noisy temporal dynamics. Existing deep forecasting models typically supervise predictions using…

Machine Learning · Computer Science 2026-01-14 Jiacheng You , Jingcheng Yang , Yuhang Xie , Zhongxuan Wu , Xiucheng Li , Feng Li , Pengjie Wang , Jian Xu , Bo Zheng , Xinyang Chen

This paper presents a comprehensive study on the integration of text-derived, time-varying sentiment factors into traditional multi-factor asset pricing models. Leveraging FinBERT, a domain-specific deep learning language model, we…

Computational Engineering, Finance, and Science · Computer Science 2025-05-06 Chi Zhang

Predicting financial markets and stock price movements requires analyzing a company's performance, historic price movements, industry-specific events alongside the influence of human factors such as social media and press coverage. We…

Information Retrieval · Computer Science 2024-11-05 Ali Elahi , Fatemeh Taghvaei

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

This study evaluates large language models as estimable classifiers and clarifies how modeling choices shape downstream measurement error. Revisiting the Economic Policy Uncertainty index, we show that contemporary classifiers substantially…

General Economics · Economics 2025-11-27 Ethan Hartley

This study integrates real-time sentiment analysis from financial news, GPT-2 and FinBERT, with technical indicators and time-series models like ARIMA and ETS to optimize S&P 500 trading strategies. By merging sentiment data with momentum…

Computational Finance · Quantitative Finance 2025-07-15 Haojie Liu , Zihan Lin , Randall R. Rojas

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

Sentiment analysis is one of the most crucial tasks in Natural Language Processing (NLP), involving the training of machine learning models to classify text based on the polarity of opinions. Pre-trained Language Models (PLMs) can be…

Computation and Language · Computer Science 2025-01-16 Hong-Viet Tran , Van-Tan Bui , Lam-Quan Tran

As interest in economic narratives has grown in recent years, so has the number of pipelines dedicated to extracting such narratives from texts. Pipelines often employ a mix of state-of-the-art natural language processing techniques, such…

General Economics · Economics 2025-06-19 Tobias Schmidt , Kai-Robin Lange , Matthias Reccius , Henrik Müller , Michael Roos , Carsten Jentsch

The impact of non-deterministic outputs from Large Language Models (LLMs) is not well examined for financial text understanding tasks. Through a compelling case study on investing in the US equity market via news sentiment analysis, we…

Trading and Market Microstructure · Quantitative Finance 2023-11-28 Boyang Yu

Large language models (LLMs) play a vital role in almost every domain in today's organizations. In the context of this work, we highlight the use of LLMs for sentiment analysis (SA) and explainability. Specifically, we contribute a novel…

Artificial Intelligence · Computer Science 2024-08-13 Lior Limonad , Fabiana Fournier , Juan Manuel Vera Díaz , Inna Skarbovsky , Shlomit Gur , Raquel Lazcano

Accurately predicting short-term stock price movement remains a challenging task due to the market's inherent volatility and sensitivity to investor sentiment. This paper discusses a deep learning framework that integrates emotion features…

Machine Learning · Computer Science 2025-10-07 An Vuong , Susan Gauch

This study explores transformer-based models such as BERT, mBERT, and XLM-R for multi-lingual sentiment analysis across diverse linguistic structures. Key contributions include the identification of XLM-R superior adaptability in…

Computation and Language · Computer Science 2025-01-23 Mikhail Krasitskii , Olga Kolesnikova , Liliana Chanona Hernandez , Grigori Sidorov , Alexander Gelbukh

In this work, we present a novel method for music emotion recognition that leverages Large Language Model (LLM) embeddings for label alignment across multiple datasets and zero-shot prediction on novel categories. First, we compute LLM…

Sound · Computer Science 2024-10-18 Renhang Liu , Abhinaba Roy , Dorien Herremans

We develop a resource-efficient methodology for measuring economic outlook in news text that combines document embeddings with synthetic training data generated by large language models. Applied to 27 million news articles, the resulting…

General Economics · Economics 2026-02-18 Elliot Beck , Franziska Eckert , Linus Kühne , Helge Liebert , Rina Rosenblatt-Wisch

In the realm of financial decision-making, predicting stock prices is pivotal. Artificial intelligence techniques such as long short-term memory networks (LSTMs), support-vector machines (SVMs), and natural language processing (NLP) models…

Machine Learning · Computer Science 2024-01-04 Kevin Taylor , Jerry Ng

Sentiment analysis is the process of identifying and categorizing people's emotions or opinions regarding various topics. Analyzing political sentiment is critical for understanding the complexities of public opinion processes, especially…

The paper considers the possibility to fine-tune Llama 2 GPT large language model (LLM) for the multitask analysis of financial news. For fine-tuning, the PEFT/LoRA based approach was used. In the study, the model was fine-tuned for the…

Computation and Language · Computer Science 2023-09-12 Bohdan M. Pavlyshenko

Large language models (LLMs) have demonstrated their potential in social science research by emulating human perceptions and behaviors, a concept referred to as algorithmic fidelity. This study assesses the algorithmic fidelity and bias of…

Artificial Intelligence · Computer Science 2024-08-09 S. Lee , T. Q. Peng , M. H. Goldberg , S. A. Rosenthal , J. E. Kotcher , E. W. Maibach , A. Leiserowitz