Paper: SSRN 4849578

Abstract

OpenAI’s new flagship model, ChatGPT-4o, released on May 13, 2024, offers enhanced natural language understanding and more coherent responses. In this paper, we

Complexity vs Empirical Score

  • Math Complexity: 4.0/10
  • Empirical Rigor: 6.5/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper involves implementing and comparing specific financial models like ARMA-GARCH, indicating moderate-to-high implementation complexity, but the core mathematics is largely descriptive and comparative rather than novel. Empirical rigor is high due to the use of real datasets (CRSP, Fama-French) and direct backtesting comparisons against Stata.

Research Flowchart

  flowchart TD
  A["Research Goal: Evaluate ChatGPT-4o for Financial Data Analysis"] --> B["Methodology: Zero-shot vs. Chain-of-Thought"]
  B --> C["Input: Financial Statements & Market Data"]
  C --> D["Process: Text Generation & Sentiment Analysis"]
  D --> E["Output: Financial Predictions & Explanations"]
  E --> F["Key Findings: High Accuracy in NLP Tasks"]
  F --> G["Outcome: Strong Potential but Limited Numerical Reasoning"]