Stock Price Trend Prediction using Emotion Analysis of Financial Headlines with Distilled LLM Model

Abstract

Capturing the volatility of stock prices helps individual traders, stock analysts, and institutions alike increase their returns in the stock market. Financial news headlines have been shown to have a significant effect on stock price mobility. Lately, many financial portals have restricted web scraping of stock prices and other related financial data of companies from their websites. In this study we demonstrate that emotion analysis of financial news headlines alone can be sufficient in predicting stock price movement, even in the absence of any financial data.