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Pleno-Alignment Framework for Stock Trend Prediction

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

Predicting stock trends is a highly rewarding but high-risk endeavor due to the complex interplay of market dynamics, irrational behaviors, and diverse sentiments. Previous studies have used time-series analysis on historical prices or sentiment analysis on textual information. However, these methods often fail to capture the dynamic interactions between text and time-series modalities and overlook the different perspectives embedded in textual data. To address these limitations, we propose the pleno-alignment framework (PAFrame) that enhances multimodal stock information through intermodal and intramodal alignment to capture market dynamics. Our framework first integrates textual and time-series data in a shared representation space to learn modal-invariant information. To tackle divergent sentiments in textual data, we employ a contrastive learning approach to extract abstract semantic meanings from objective and subjective perspectives, thereby improving the robustness of language representations. Finally, we use a hybrid approach that explicitly combines cross-attention mechanisms to create a unified representation and utilizes prompts to implicitly guide language models with numerical financial indicators for final prediction. Our comprehensive experiments on five real-world datasets show that PAFrame outperforms existing methods in predicting stock trends.

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Original languageEnglish
Pages (from-to)16604-16618
JournalIEEE Transactions on Neural Networks and Learning Systems
Volume36
Issue number9
Online published1 May 2025
DOIs
Publication statusPublished - Sept 2025

Funding

This work was supported in part by the InnoHK Initiative, in part by the Government of the HKSAR, and in part by the Laboratory for AI-Powered Financial Technologies.

Research Keywords

  • Contrastive learning
  • language model
  • multimodal
  • stock trend prediction
  • time series

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