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FinBench: Time-Gated Calibration and Uncertainty Benchmarking for Agentic Financial Forecasting

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Listed:
  • Rishab Ghosh
  • Vinay Devarakonda

Abstract

Large language models (LLMs) are increasingly used as components of agentic systems that observe, plan, and act. In finance, even "assistive" systems become decision-relevant once their outputs are used to size trades or allocate risk. A key failure mode is the confidence--competence gap: a model that is only slightly better than chance but consistently overconfident will, under typical bet-sizing rules, generate negative long-run growth. Existing benchmarks emphasize semantic understanding or point accuracy, but do not directly test probabilistic calibration under the temporal constraints and non-stationarity that define real markets. We introduce FinBench, a benchmark designed to evaluate calibration and uncertainty quality for financial forecasting in a setting that is (i) strictly time-gated to avoid look-ahead bias and (ii) evaluated with strictly proper scoring rules that penalize hallucinated confidence. FinBench tasks require models to output (a) a probability of positive return and (b) an 80% prediction interval for realized log return; evaluation uses the Brier score and the Winkler interval score, along with skill scores against hard baselines. This paper describes the benchmark specification and reports a small pilot run (one trading day; three liquid tickers; 33 forecasts) as a sanity check of the pipeline. The pilot illustrates how calibration-sensitive metrics distinguish between "confident but fragile" behavior and uncertainty-aware forecasting.

Suggested Citation

  • Rishab Ghosh & Vinay Devarakonda, 2026. "FinBench: Time-Gated Calibration and Uncertainty Benchmarking for Agentic Financial Forecasting," Papers 2607.16229, arXiv.org.
  • Handle: RePEc:arx:papers:2607.16229
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    References listed on IDEAS

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