Generalized Stock Price Prediction for Multiple Stocks Combined with News Fusion

Pei-Jun Liao, Hung-Shin Lee, Yao-Fei Cheng, Li-Wei Chen, Hung-yi Lee and Hsin-Min Wang

Papers from arXiv.org

Abstract: Predicting stock prices presents challenges in financial forecasting. While traditional approaches such as ARIMA and RNNs are prevalent, recent developments in Large Language Models (LLMs) offer alternative methodologies. This paper introduces an approach that integrates LLMs with daily financial news for stock price prediction. To address the challenge of processing news data and identifying relevant content, we utilize stock name embeddings within attention mechanisms. Specifically, we encode news articles using a pre-trained LLM and implement three attention-based pooling techniques -- self-attentive, cross-attentive, and position-aware self-attentive pooling -- to filter news based on stock relevance. The filtered news embeddings, combined with historical stock prices, serve as inputs to the prediction model. Unlike prior studies that focus on individual stocks, our method trains a single generalized model applicable across multiple stocks. Experimental results demonstrate a 7.11% reduction in Mean Absolute Error (MAE) compared to the baseline, indicating the utility of stock name embeddings for news filtering and price forecasting within a generalized framework.

Date: 2026-03
New Economics Papers: this item is included in nep-ain, nep-cmp, nep-fmk and nep-for
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