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Outsmarting Human Decisions

Proof of Concept (PoC) – AI-Driven Financial Decisions 

AI CAN Forecast Stock Price Movements?

The foundational study “Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models” catalyzed the Proof of Concept for Bifin AI was spearheaded by the distinguished researchers Alejandro Lopez-Lira and Yuehua Tang from Florida University in 2023. This groundbreaking research delved into the capabilities of generative Pre-trained Transformer (GPT) models to interpret market sentiments and execute informed financial decisions based on these analyses. Over the course of 15 months, their untrained GPT model not only navigated through the volatile waters of the US markets but also achieved a staggering 550% return, starkly contrasting the market’s downtrend during the same period. This remarkable outcome underscored the potential of AI in revolutionizing financial decision-making, setting the stage for the development of Silk. The full details of this transformative study can be explored further in their publication, accessible here.5

Importance of the Study

The Proof of Concept (PoC) represents a critical juncture for Bifin AI, serving as the foundation upon which our innovative AI-driven financial decision-making model, Silk, is built. This study conclusively demonstrated that AI can not only match but significantly outperform human decision-making in financial markets, offering a groundbreaking approach to investment strategies.

  • Duration

    15 months

  • AI portfolio returns

    550% Demonstrated over the course of the study

  • Corresponding Market

    NYSE, NASDAQ, and AMEX, 4.138 unique companies included in the study

  • Sharpe Ratio for GPT4.0

    3.8 indicates the AI's superior risk-adjusted return compared to traditional market benchmarks

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Contact

  • press@bifin.ai
  • 2 C, Parc d'Activités L - 8308 Capellen Luxembourg RCS B255923

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Bifin S.à r.l. is a company registered in Luxembourg with the registration number RCS B255923 and legal address in 2 Parc d’Activités, L-8308 Capellen, Luxembourg.

Bifin® is a registered trademark under Nice classification 36 in the Register of European Union Intellectual Property Office (EUIPO) with the registration number 018434205. The trademark Registration Number is a unique ID to identify the Bifin mark in EUIPO. The Bifin mark is filed in the Nice classification category 36 of Financial, monetary, banking and insurance services and real estate affairs. The status of the Bifin filing is Registered. 


Transparency of remuneration policies

Bifin includes sustainability risk in its general remuneration policy. These policies include our objectives of high-standard for corporate governance sustainable long-term value-creation. The objective is also to ensure an effective and transparent risk management and clear goals for the personnel. These goals are connected to transparent and sound balance between fixed and non-fixed compensation. Remuneration evaluation of Bifin includes sustainability risk analysis in order to ensure sustainability factors are properly taken into account in any decision-making and incentives of the personnel.