A Review of Large Language Models for Stock Price Forecasting from a Hedge-Fund Perspective
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Gurgul, Vincent & Lessmann, Stefan & Härdle, Wolfgang Karl, 2025. "Deep learning and NLP in cryptocurrency forecasting: Integrating financial, blockchain, and social media data," International Journal of Forecasting, Elsevier, vol. 41(4), pages 1666-1695.
- Rick Steinert & Saskia Altmann, 2023. "Linking microblogging sentiments to stock price movement: An application of GPT-4," Papers 2308.16771, arXiv.org.
- Bledar Fazlija & Pedro Harder, 2022. "Using Financial News Sentiment for Stock Price Direction Prediction," Mathematics, MDPI, vol. 10(13), pages 1-20, June.
- Shuaiyu Chen & T. Clifton Green & Huseyin Gulen & Dexin Zhou, 2024. "What Does ChatGPT Make of Historical Stock Returns? Extrapolation and Miscalibration in LLM Stock Return Forecasts," Papers 2409.11540, arXiv.org.
- Yuqi Nie & Yaxuan Kong & Xiaowen Dong & John M. Mulvey & H. Vincent Poor & Qingsong Wen & Stefan Zohren, 2024. "A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges," Papers 2406.11903, arXiv.org.
- Yijia Xiao & Edward Sun & Tong Chen & Fang Wu & Di Luo & Wei Wang, 2025. "Trading-R1: Financial Trading with LLM Reasoning via Reinforcement Learning," Papers 2509.11420, arXiv.org.
- Udit Gupta, 2023. "GPT-InvestAR: Enhancing Stock Investment Strategies through Annual Report Analysis with Large Language Models," Papers 2309.03079, arXiv.org.
- Xinli Yu & Zheng Chen & Yuan Ling & Shujing Dong & Zongyi Liu & Yanbin Lu, 2023. "Temporal Data Meets LLM -- Explainable Financial Time Series Forecasting," Papers 2306.11025, arXiv.org.
- Bingyang Wang & Grant Johnson & Maria Hybinette & Tucker Balch, 2025. "Is All the Information in the Price? LLM Embeddings versus the EMH in Stock Clustering," Papers 2509.01590, arXiv.org.
- Pekka Malo & Ankur Sinha & Pekka Korhonen & Jyrki Wallenius & Pyry Takala, 2014.
"Good debt or bad debt: Detecting semantic orientations in economic texts,"
Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 65(4), pages 782-796, April.
- Pekka Malo & Ankur Sinha & Pyry Takala & Pekka Korhonen & Jyrki Wallenius, 2013. "Good Debt or Bad Debt: Detecting Semantic Orientations in Economic Texts," Papers 1307.5336, arXiv.org, revised Jul 2013.
- Tianjiao Zhao & Jingrao Lyu & Stokes Jones & Harrison Garber & Stefano Pasquali & Dhagash Mehta, 2025. "AlphaAgents: Large Language Model based Multi-Agents for Equity Portfolio Constructions," Papers 2508.11152, arXiv.org.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Deborah Miori & Constantin Petrov, 2023. "Narratives from GPT-derived Networks of News, and a link to Financial Markets Dislocations," Papers 2311.14419, arXiv.org.
- Liyuan Chen & Shuoling Liu & Jiangpeng Yan & Xiaoyu Wang & Henglin Liu & Chuang Li & Kecheng Jiao & Jixuan Ying & Yang Veronica Liu & Qiang Yang & Xiu Li, 2025. "Advancing Financial Engineering with Foundation Models: Progress, Applications, and Challenges," Papers 2507.18577, arXiv.org, revised Dec 2025.
- Mehmet Caner & Agostino Capponi & Nathan Sun & Jonathan Y. Tan, 2026. "Designing Agentic AI-Based Screening for Portfolio Investment," Papers 2603.23300, arXiv.org.
- Costola, Michele & Hinz, Oliver & Nofer, Michael & Pelizzon, Loriana, 2023.
"Machine learning sentiment analysis, COVID-19 news and stock market reactions,"
Research in International Business and Finance, Elsevier, vol. 64(C).
- Costola, Michele & Nofer, Michael & Hinz, Oliver & Pelizzon, Loriana, 2020. "Machine learning sentiment analysis, Covid-19 news and stock market reactions," SAFE Working Paper Series 288, Leibniz Institute for Financial Research SAFE.
- Yuqi Nie & Yaxuan Kong & Xiaowen Dong & John M. Mulvey & H. Vincent Poor & Qingsong Wen & Stefan Zohren, 2024. "A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges," Papers 2406.11903, arXiv.org.
- Joel R. Bock, 2024. "Generating long-horizon stock "buy" signals with a neural language model," Papers 2410.18988, arXiv.org.
- Felix Drinkall & Janet B. Pierrehumbert & Stefan Zohren, 2024. "Forecasting Credit Ratings: A Case Study where Traditional Methods Outperform Generative LLMs," Papers 2407.17624, arXiv.org, revised Jan 2025.
- Alejandro Lopez-Lira & Jihoon Kwon & Sangwoon Yoon & Jy-yong Sohn & Chanyeol Choi, 2025. "Bridging Language Models and Financial Analysis," Papers 2503.22693, arXiv.org, revised May 2026.
- Babolmorad, N. & Massoud, N., 2025. "Supervising Sentiment Models: Market Signals or Human Expertise?," Cambridge Working Papers in Economics 2577, Faculty of Economics, University of Cambridge.
- Zonghan Wu & Congyuan Zou & Junlin Wang & Chenhan Wang & Hangjing Yang & Yilei Shao, 2025. "Towards Competent AI for Fundamental Analysis in Finance: A Benchmark Dataset and Evaluation," Papers 2506.07315, arXiv.org, revised Nov 2025.
- Raeid Saqur & Ken Kato & Nicholas Vinden & Frank Rudzicz, 2024. "NIFTY Financial News Headlines Dataset," Papers 2405.09747, arXiv.org.
- Kunihiro Miyazaki & Takanobu Kawahara & Stephen Roberts & Stefan Zohren, 2026. "Toward Expert Investment Teams:A Multi-Agent LLM System with Fine-Grained Trading Tasks," Papers 2602.23330, arXiv.org.
- Schneider, Constantin J. & Yilmaz, Yahya, 2025. "Stock portfolio selection based on risk appetite: Evidence from ChatGPT," Finance Research Letters, Elsevier, vol. 82(C).
- Kirtac, Kemal & Germano, Guido, 2024.
"Sentiment trading with large language models,"
Finance Research Letters, Elsevier, vol. 62(PB).
- Kirtac, Kemal & Germano, Guido, 2024. "Sentiment trading with large language models," LSE Research Online Documents on Economics 122592, London School of Economics and Political Science, LSE Library.
- Kemal Kirtac & Guido Germano, 2024. "Sentiment trading with large language models," Papers 2412.19245, arXiv.org.
- Chen, Cathy Yi-Hsuan & Fengler, Matthias R. & Härdle, Wolfgang Karl & Liu, Yanchu, 2022.
"Media-expressed tone, option characteristics, and stock return predictability,"
Journal of Economic Dynamics and Control, Elsevier, vol. 134(C).
- Chen, Cathy Yi-Hsuan & Fengler, Matthias R. & Härdle, Wolfgang Karl & Liu, Yanchu, 2019. "Media-expressed tone, Option Characteristics, and Stock Return Predictability," IRTG 1792 Discussion Papers 2019-015, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
- Fengbin Zhu & Junfeng Li & Liangming Pan & Wenjie Wang & Fuli Feng & Chao Wang & Huanbo Luan & Tat-Seng Chua, 2025. "Towards Temporal-Aware Multi-Modal Retrieval Augmented Generation in Finance," Papers 2503.05185, arXiv.org, revised Aug 2025.
- Paola Cerchiello & Giancarlo Nicola, 2018. "Assessing News Contagion in Finance," Econometrics, MDPI, vol. 6(1), pages 1-19, February.
- Xuewen Han & Neng Wang & Shangkun Che & Hongyang Yang & Kunpeng Zhang & Sean Xin Xu, 2024. "Enhancing Investment Analysis: Optimizing AI-Agent Collaboration in Financial Research," Papers 2411.04788, arXiv.org.
- Travis Adams & Andrea Ajello & Diego Silva & Francisco Vazquez-Grande, 2023. "More than Words: Twitter Chatter and Financial Market Sentiment," Papers 2305.16164, arXiv.org.
- Chandan Singh & Armin Askari & Rich Caruana & Jianfeng Gao, 2023. "Augmenting interpretable models with large language models during training," Nature Communications, Nature, vol. 14(1), pages 1-11, December.
More about this item
NEP fields
This paper has been announced in the following NEP Reports:- NEP-AIN-2026-05-11 (Artificial Intelligence)
- NEP-BIG-2026-05-11 (Big Data)
- NEP-CMP-2026-05-11 (Computational Economics)
- NEP-FMK-2026-05-11 (Financial Markets)
- NEP-FOR-2026-05-11 (Forecasting)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2605.05211. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.
Printed from https://ideas.repec.org/p/arx/papers/2605.05211.html