"FinSphere: A Conversational Stock Analysis Agent Equipped with Quantitative Tools based on Real-Time Database"

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FinSphere improves LLM stock analysis by combining real-time data, quantitative tools, and a specialized dataset. This addresses limitations in existing financial LLMs, which lack depth in analysis and objective evaluation metrics.

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Paper - https://arxiv.org/abs/2501.12399

Original Problem 🤔:

→ Existing financial LLMs lack depth in stock analysis and objective evaluation metrics.

→ They struggle to generate professional-grade insights.

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Solution in this Paper 💡:

→ FinSphere integrates real-time financial databases, specialized quantitative tools, and an instruction-tuned LLM.

→ Stocksis, a dataset curated by industry experts, enhances the LLM’s stock analysis capabilities.

→ AnalyScore provides a systematic evaluation framework to assess the quality of stock analysis reports.

→ FinSphere decomposes user queries into subtasks, utilizes quantitative tools to analyze real-time data, and synthesizes the results into a comprehensive report.

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Key Insights from this Paper 🗝️:

→ Combining real-time data, quantitative tools, and a specialized dataset enhances LLM stock analysis capabilities.

→ Stocksis and AnalyScore address the limitations of existing financial LLMs.

→ FinSphere's integrated approach outperforms general and domain-specific LLMs and agent-based systems.

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Results 💯:

→ FinSphere achieves a total score of 70.88 out of 100 using the AnalyScore framework.

→ FinMem and GPT-40 score 67.55 and 66.61, respectively.

→ Specialized agent-based systems generally outperform standalone language models.