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Bibliographic Details
Main Authors: Jeong, Yujin, Jung, Noelle, Leung, Brian Y. C.
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2605.30652
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Table of Contents:
  • Traditional multi-modal financial forecasting often relies on scalar sentiment scores, which fail to capture the nuances of financial news. To address this information loss, this paper explores high-dimensional representation learning by replacing discrete polarity ratings with dense FinBERT embeddings within a Transformer-based forecasting architecture. We benchmarked various embedding strategies on the FNSPID dataset, including raw embeddings, attention-weighted aggregation, and a custom Siamese network. While the attention-based mechanism struggled with the low signal-to-noise ratio typical of financial data, the integration of Siamese-optimized embeddings outperformed both the scalar baseline and raw embedding approaches, demonstrating that preserving high-dimensional narrative context yields improved predictive accuracy for short-term stock price movements.