Can Chatgpt Improve Investment Decision? From a Portfolio Management Perspective

Paper: SSRN 4390529

Abstract

While ChatGPT’s linguistic capabilities have recently seen an explosion of interest in a variety of fields, its potential in finance, particularly investme

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 7.5/10
• Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper likely uses descriptive statistics and simple performance metrics rather than advanced derivations, but evaluates ChatGPT’s predictions against actual market data and standard portfolio construction.

Research Flowchart

  flowchart TD
  A["Research Goal<br>Can ChatGPT improve<br>investment decisions?"] --> B["Methodology<br>Experimental Portfolio Backtesting"]
  B --> C["Data Inputs<br>Market Data &<br>ChatGPT Investment Signals"]
  C --> D["Computational Process<br>Portfolio Construction<br>& Performance Evaluation"]
  D --> E["Key Findings/Outcomes<br>1. Enhanced Portfolio Returns<br>2. Improved Sharpe Ratio<br>3. Better Diversification"]