# Quantifying Qualitative Insights: Leveraging LLMs to Market Predict

arXiv: https://arxiv.org/abs/2411.08404 · HTML: https://mlsanity.com/paper/2411.08404/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Builds on 18 of its 34 references that are in the map.
- First posted on arXiv 13 Nov 2024.

## Builds on (most cited first, 18 of 18)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [BloombergGPT: A Large Language Model for Finance](https://mlsanity.com/paper/2303.17564/) (2023)
- [A Survey on In-context Learning](https://mlsanity.com/paper/2301.00234/) (2022)
- [NV-Embed: Improved Techniques for Training LLMs as Generalist Embedding Models](https://mlsanity.com/paper/2405.17428/) (2024)
- [FinGPT: Open-Source Financial Large Language Models](https://mlsanity.com/paper/2306.06031/) (2023)
- [PIXIU: A Large Language Model, Instruction Data and Evaluation Benchmark for Finance](https://mlsanity.com/paper/2306.05443/) (2023)
- [Chain-of-Thought Reasoning Without Prompting](https://mlsanity.com/paper/2402.10200/) (2024)
- [Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models](https://mlsanity.com/paper/2304.07619/) (2023)
- [Revolutionizing Finance with LLMs: An Overview of Applications and Insights](https://mlsanity.com/paper/2401.11641/) (2024)
- [The Wall Street Neophyte: A Zero-Shot Analysis of ChatGPT Over MultiModal Stock Movement Prediction Challenges](https://mlsanity.com/paper/2304.05351/) (2023)
- [Are ChatGPT and GPT-4 General-Purpose Solvers for Financial Text Analytics? A Study on Several Typical Tasks](https://mlsanity.com/paper/2305.05862/) (2023)
- [Time Series Forecasting with LLMs: Understanding and Enhancing Model Capabilities](https://mlsanity.com/paper/2402.10835/) (2024)
- [Empower Large Language Model to Perform Better on Industrial Domain-Specific Question Answering](https://mlsanity.com/paper/2305.11541/) (2023)
- [LLMFactor: Extracting Profitable Factors through Prompts for Explainable Stock Movement Prediction](https://mlsanity.com/paper/2406.10811/) (2024)
- [Beyond Classification: Financial Reasoning in State-of-the-Art Language Models](https://mlsanity.com/paper/2305.01505/) (2023)
- [Can GPT models be Financial Analysts? An Evaluation of ChatGPT and GPT-4 on mock CFA Exams](https://mlsanity.com/paper/2310.08678/) (2023)

## Built on by (most cited first, 3 of 3)

- [Inferring Events from Time Series using Language Models](https://mlsanity.com/paper/2503.14190/) (2025)
- [Integrating Large Language Models in Financial Investments and Market Analysis: A Survey](https://mlsanity.com/paper/2507.01990/) (2025)
- [To Trade or Not to Trade: An Agentic Approach to Estimating Market Risk Improves Trading Decisions](https://mlsanity.com/paper/2507.08584/) (2025)

## Abstract (arXiv)

Recent advancements in Large Language Models (LLMs) have the potential to transform financial analytics by integrating numerical and textual data. However, challenges such as insufficient context when fusing multimodal information and the difficulty in measuring the utility of qualitative outputs, which LLMs generate as text, have limited their effectiveness in tasks such as financial forecasting. This study addresses these challenges by leveraging daily reports from securities firms to create high-quality contextual information. The reports are segmented into text-based key factors and combined with numerical data, such as price information, to form context sets. By dynamically updating few-shot examples based on the query time, the sets incorporate the latest information, forming a highly relevant set closely aligned with the query point. Additionally, a crafted prompt is designed to assign scores to the key factors, converting qualitative insights into quantitative results. The derived scores undergo a scaling process, transforming them into real-world values that are used for prediction. Our experiments demonstrate that LLMs outperform time-series models in market forecasting, though challenges such as imperfect reproducibility and limited explainability remain.