ChatGPT Can Predict Stock Market Moves? New Study Shows ChatGPT Surprisingly Accurate in Predicting Stock Moves And Could Even Replace Investment Analysts
A new study conducted by finance professors from the University of Florida shows the potential value of ChatGPT in predicting stock market movements.
In the study, over 50,000 news headlines about companies dating back to October 2021 were fed to the chatbot, which evaluated whether the news was good, bad or irrelevant to the company’s stock prices. Using sentiment analysis, the chatbot generated a “ChatGPT score,” which was then analyzed to determine whether it was predictive of the companies’ stock market performance the following day.
The study found a significant positive correlation between the ChatGPT scores and the next-day stock performance for the analyzed companies. Companies with higher scores tended to have better returns than those with lower scores. ChatGPT outperformed traditional sentiment analysis methods that also used data from headlines and social media to predict stock movements.
By Jeannine Mancini via Yahoo! Finance