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Explainable assessment of financial experts' credibility by classifying social media forecasts and checking the predictions with actual market data

Authors :
García-Méndez, Silvia
de Arriba-Pérez, Francisco
González-Gonzáleza, Jaime
González-Castaño, Francisco J.
Source :
Expert Systems with Applications. 124515 (2024)
Publication Year :
2024

Abstract

Social media include diverse interaction metrics related to user popularity, the most evident example being the number of user followers. The latter has raised concerns about the credibility of the posts by the most popular creators. However, most existing approaches to assess credibility in social media strictly consider this problem a binary classification, often based on a priori information, without checking if actual real-world facts back the users' comments. In addition, they do not provide automatic explanations of their predictions to foster their trustworthiness. In this work, we propose a credibility assessment solution for financial creators in social media that combines Natural Language Processing and Machine Learning. The reputation of the contributors is assessed by automatically classifying their forecasts on asset values by type and verifying these predictions with actual market data to approximate their probability of success. The outcome of this verification is a continuous credibility score instead of a binary result, an entirely novel contribution by this work. Moreover, social media metrics (i.e., user context) are exploited by calculating their correlation with the credibility rankings, providing insights on the interest of the end-users in financial posts and their forecasts (i.e., drop or rise). Finally, the system provides natural language explanations of its decisions based on a model-agnostic analysis of relevant features.

Details

Database :
arXiv
Journal :
Expert Systems with Applications. 124515 (2024)
Publication Type :
Report
Accession number :
edsarx.2406.11924
Document Type :
Working Paper
Full Text :
https://doi.org/10.1016/j.eswa.2024.124515