Stock Analyzer 📈

An AI Bot that can help you with stock investment by analyzing all the real-time as well as historic stock-related information with the help of LLM

Blog-

https://medium.com/p/7f8a62cbcaaa

Motivation

As a retail investor, if you don't have a finance background or the capability to understand all the complicated financial terms, makes the stock analysis process really time-consuming. Every time I end up watching some fin-YouTuber's video or some random blog on the internet to avoid manually dealing with all this stuff. This is where i thought of making a Langchian and LLM-based bot that can take real-time as well as historic data to make investment analysis

Experimentation

Have defined a couple of tools/functions for the agent which scraps and gather real time information related to the input stock. It includes following-

1. Historic Stock price data. (You can take 1month, 1 year data depending on you models context length)
2. Company's financial statement
3. Latest company related news
   All these factors seems sufficient for the analysis, it captures historical performance as well as real time market sentiment. If you want further more tools can be added.

Approach 1- Using langchain ReAct agent

• The response and action agent did not turn out to be that good. Sometimes the results were below average
• Zero shot React agent dynamically thinks about the query in runtime and tries to perform action based on the thought
• The agent used to get stuck in infinite loop of thoughts and actions as it was not able to think with that kind of expected level for complicated task like stock analysis
• This approach may work or may not, Further improvements can be made by modifying the prompt

Approach 2- Predefine prompt with function calls

• Open ai has introduced function call a month ago, which is really helpful with which we can get structured output as we want in json format from LLM
• In this method stock ticker is extracted with the help of function calls. As most of the future code was dependet on this single argument
• And in the later stages stock data, news, financial statements are simply fetched by inputting ticker symbol. Further analyzed by openai llm
• It is recommended to use this approach for robust and stable analysis

Example -

Input-
Anazlyze_stock("Is it a good time to invest in Adani power?")

Output-

{'Query': 'Shall I invest in Adani power right now?', 'Company_name': 'Adani Power', 'Ticker': 'ADANIPOWER'}


Analyzing.....

Investment Thesis for Adani Power:

1. Strong Financials: Adani Power has shown consistent growth in its financials over the past three years. The company has a positive tangible book value, indicating a strong asset base. Additionally, the company has a high invested capital, which suggests a strong financial position.
2. Increasing Stock Price: The stock price of Adani Power has been increasing steadily over the past few days. This indicates positive investor sentiment and potential for further growth in the future.
3. Declining Revenues: Adani Power has reported declining revenues in its recent quarterly results. This could be a concern for investors as it may indicate a slowdown in the company's business operations. However, further analysis is required to determine the reasons behind the decline and its potential impact on future performance.
4. Positive News Coverage: Adani Power has been in the news recently, with multiple articles highlighting the company's performance and prospects. Positive news coverage can attract more investors and potentially drive up the stock price.
5. Power Sector Outlook: The power sector in India is expected to grow in the coming years due to increasing demand for electricity. Adani Power, being a major player in the sector, is well-positioned to benefit from this growth. However, it is important to consider the competitive landscape and regulatory environment of the sector before making an investment decision.

Conclusion:
Based on the available data, investing in Adani Power right now could be a favorable option. The company has strong financials and a positive stock price trend. However, it is important to conduct further research and analysis to fully understand the reasons behind the declining revenues and assess the potential risks associated with the power sector.

Further improvements and addition to be done

a) Streamlit Demo
b) More tools can be added. Fo eg. math tool to perform complex technical analysis
b) More robust prompting for stable output
c) Support of other opensource LLMS
d) Note- I am not a finance expert, Its just a fun hobby project, Feel free to add any suggestions/ moodification