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What if ChatGPT were a quant asset manager

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  • Kim, Jang Ho

Abstract

Even though large language models such as ChatGPT are not specifically trained for analyzing asset returns or recommending stocks, it may still provide additional insight into making investment decisions. In this study, we propose a quantitative investment approach that incorporates recommendations from ChatGPT. Based on ChatGPT's general understanding of economy and financial market movements, we ask ChatGPT to recommend asset classes under various economic conditions. Our empirical results show that asset class recommendations based on economic indicators of ChatGPT can improve portfolio efficiency.

Suggested Citation

  • Kim, Jang Ho, 2023. "What if ChatGPT were a quant asset manager," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009522
    DOI: 10.1016/j.frl.2023.104580
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    References listed on IDEAS

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    1. Saggu, Aman & Ante, Lennart, 2023. "The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis," Finance Research Letters, Elsevier, vol. 55(PB).
    2. Dowling, Michael & Lucey, Brian, 2023. "ChatGPT for (Finance) research: The Bananarama Conjecture," Finance Research Letters, Elsevier, vol. 53(C).
    3. Oleksandr Romanko & Akhilesh Narayan & Roy H. Kwon, 2023. "ChatGPT-based Investment Portfolio Selection," Papers 2308.06260, arXiv.org.
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