ChatGPT can forecast stock price movements, study finds – InvestorDaily
In an extensive study, published earlier this year, the researchers found that ChatGPT outperforms traditional sentiment analysis methods to accurately forecast stock movements.
“Our results suggest that incorporating advanced language models into the investment decision-making process can yield more accurate predictions and enhance the performance of quantitative trading strategies,” the pair wrote in their paper titled, Can ChatGPT forecast stock price movements? Return predictability and large language models.
Their study is based on sentiment analysis of news headlines across a sample period beginning in October 2021 and ending in December 2022.
“To conduct our analysis, we first obtain daily…
