Unveiling the Power of Multi-Modality in Stock Predictions

The world of stock trading is a complex interplay of financial markets, economic trends, and investor behavior. Traditional financial models from econometrics, while insightful, often rely heavily on theoretical assumptions, making them less data-driven. Enter the realm of artificial intelligence (AI), where recent advancements have paved the way for predictive, multi-modal deep learning models. These models, driven by data, promise to provide deeper insights into the stock market, especially when combined with stock news.

One such model is a multi-modal model. But what exactly is a multi-modal model, and how does it stand out in the crowded space of stock prediction models?

A Multi-Modal Model For Stock Prediction?

A multi-modal model is designed for generalized stock prediction. It leverages both stock news and option prices to predict volatility, offering fine-grained modeling for stock price and volatility. The model introduces an attention mechanism that amplifies the diverse representations learned by multi-head attention.

These multi-head attentions are, to some extent, like specialized “experts” identifying grouping information in the stock time series pattern. These “experts” are adept at providing accurate predictions for intricate stock movement patterns.

How Does A Multi-Modal Model Perform Comparing To Traditional Model?

To assess the capability of a multi-modal model, extensive experiments were conducted, comparing its performance against other models using data from the NASDAQ and NYSE stock markets. The results were promising and we shall release them in the future.

A multi-modal model, with its innovative architecture and attention mechanisms, has showcased its potential in the domain of stock predictions. By leveraging multi-modal data sources and specialized experts, it offers a data-driven approach to understanding the intricate dynamics of the stock market. As AI continues to evolve, multi-modal models will undoubtedly play a pivotal role in shaping the future of stock trading.