Financial markets are adaptive systems in which asset prices emerge and change with respect to the continuous interactions of investors, institutions, and algorithmic traders, reflecting both historical trends and real-time information flows. Traditional time-series forecasting methods, such as ARIMA or autoregressive benchmarks (ARA), rely primarily on past price patterns and are limited in capturing these exogenous signals. In this study, we introduce a cross-domain, multi-modal framework that integrates numerical market data with textual sentiment embeddings using recurrent neural networks (RNNs) and transformer-based architectures. Evaluated over 7 years, the model outperformed the autoregressive benchmark by 44.31% in cumulative returns, reduced risk-associated volatility by 21.34%, and improved the Sharpe Ratio from 0.18 to 1.38. These results demonstrate that incorporating cross-domain signals enhances both directional accuracy and risk-adjusted performance. Overall, this work highlights the potential of multi-modal computational approaches to systematically leverage behavioral, informational, and market signals, providing a robust methodology for financial forecasting and practical investment decision-making.
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Chebolu et al. (2025) studied this question.
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