Bighead's Algorithm Notes

Aug 19, 2026 · Artificial Intelligence

Can LLMs Uncover Real Economic Links to Boost Cross‑Stock Prediction?

The paper proposes a two‑stage Retrieve‑then‑Reason framework that first builds a sparse candidate graph from 10‑K text embeddings and then uses a large language model to filter edges for true economic relationships, resulting in a higher‑Sharpe, lower‑drawdown cross‑stock trading signal on S&P 500 constituents.