What if ChatGPT were a quant asset manager

Jang Ho Kim

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: Even though large language models such as ChatGPT are not specifically trained for analyzing asset returns or recommending stocks, it may still provide additional insight into making investment decisions. In this study, we propose a quantitative investment approach that incorporates recommendations from ChatGPT. Based on ChatGPT's general understanding of economy and financial market movements, we ask ChatGPT to recommend asset classes under various economic conditions. Our empirical results show that asset class recommendations based on economic indicators of ChatGPT can improve portfolio efficiency.

Keywords: ChatGPT; Portfolio optimization; Economic indicators; Asset allocation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009522

DOI: 10.1016/j.frl.2023.104580

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