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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

There are multiple sources of financial news online which influence market movements and trader's decisions. This highlights the need for accurate sentiment analysis, in addition to having appropriate algorithmic trading techniques, to…

Computation and Language · Computer Science 2024-03-20 Thanos Konstantinidis , Giorgos Iacovides , Mingxue Xu , Tony G. Constantinides , Danilo Mandic

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

Financial sentiment analysis plays a crucial role in informing investment decisions, assessing market risk, and predicting stock price trends. Existing works in financial sentiment analysis have not considered the impact of stock prices or…

Artificial Intelligence · Computer Science 2025-12-25 Chaithra , Kamesh Kadimisetty , Biju R Mohan

Financial sentiment analysis is crucial for trading and investment decision-making. This study introduces an adaptive retrieval augmented framework for Large Language Models (LLMs) that aligns with human instructions through Instruction…

Computational Engineering, Finance, and Science · Computer Science 2024-10-22 Zijie Zhao , Roy E. Welsch

We propose a reinforcement learning (RL) framework that leverages multimodal data including historical stock prices, sentiment analysis, and topic embeddings from news articles, to optimize trading strategies for SP100 stocks. Building upon…

Portfolio Management · Quantitative Finance 2024-12-24 Sumit Nawathe , Ravi Panguluri , James Zhang , Sashwat Venkatesh

Reinforcement learning (RL) has emerged as a transformative approach for financial trading, enabling dynamic strategy optimization in complex markets. This study explores the integration of sentiment analysis, derived from large language…

Computational Finance · Quantitative Finance 2024-11-19 Ananya Unnikrishnan

Financial sentiment analysis refers to classifying financial text contents into sentiment categories (e.g. positive, negative, and neutral). In this paper, we focus on the classification of financial news title, which is a challenging task…

Computation and Language · Computer Science 2024-01-11 Wei Luo , Dihong Gong

In this study, we integrate sentiment analysis within a financial framework by leveraging FinBERT, a fine-tuned BERT model specialized for financial text, to construct an advanced deep learning model based on Long Short-Term Memory (LSTM)…

Statistical Finance · Quantitative Finance 2025-06-12 Tingsong Jiang , Qingyun Zeng

Large language models (LLMs) play an increasingly important role in financial markets analysis by capturing signals from complex and heterogeneous textual data sources, such as tweets, news articles, reports, and microblogs. However, their…

Computation and Language · Computer Science 2025-12-19 Alvaro Paredes Amorin , Andre Python , Christoph Weisser

Opinions expressed in online finance-related textual data are having an increasingly profound impact on trading decisions and market movements. This trend highlights the vital role of sentiment analysis as a tool for quantifying the nature…

Computation and Language · Computer Science 2025-07-25 Giorgos Iacovides , Wuyang Zhou , Danilo Mandic

In response to Task II of the FinRL Challenge at ACM ICAIF 2024, this study proposes a novel prompt framework for fine-tuning large language models (LLM) with Reinforcement Learning from Market Feedback (RLMF). Our framework incorporates…

Trading and Market Microstructure · Quantitative Finance 2025-02-05 Arnav Grover

This paper presents a novel risk-sensitive trading agent combining reinforcement learning and large language models (LLMs). We extend the Conditional Value-at-Risk Proximal Policy Optimization (CPPO) algorithm, by adding risk assessment and…

Trading and Market Microstructure · Quantitative Finance 2025-02-12 Mostapha Benhenda

Financial sentiment analysis is critical for valuation and investment decision-making. Traditional NLP models, however, are limited by their parameter size and the scope of their training datasets, which hampers their generalization…

Computation and Language · Computer Science 2023-11-07 Boyu Zhang , Hongyang Yang , Tianyu Zhou , Ali Babar , Xiao-Yang Liu

This study proposes a novel hybrid deep learning framework that integrates a Large Language Model (LLM) with a Transformer architecture for stock price forecasting. The research addresses a critical theoretical gap in existing approaches…

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

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

With the development of artificial intelligence technology, quantitative trading systems represented by reinforcement learning have emerged in the stock trading market. The authors combined the deep Q network in reinforcement learning with…

Statistical Finance · Quantitative Finance 2021-12-01 Yizhuo Li , Peng Zhou , Fangyi Li , Xiao Yang

Large language models (LLMs) have shown strong reasoning capabilities and are increasingly explored for financial trading. Existing LLM-based trading agents, however, largely focus on single-step prediction and lack integrated mechanisms…

Multiagent Systems · Computer Science 2025-11-18 Bijia Liu , Ronghao Dang

In this study, we explore the application of sentiment analysis on financial news headlines to understand investor sentiment. By leveraging Natural Language Processing (NLP) and Large Language Models (LLM), we analyze sentiment from the…

Computation and Language · Computer Science 2024-06-21 Kangtong Mo , Wenyan Liu , Xuanzhen Xu , Chang Yu , Yuelin Zou , Fangqing Xia
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