#Japan #AI Investment #Tokyo #AIQ #Analystant

Introduction to Analystant

In a significant leap towards enhancing investment analysis, aiQ Co., Ltd. has unveiled its latest AI-as-a-Service solution, Analystant. This innovative tool is designed to autonomously generate analyst-like reports by synthesizing news and data, empowering investors with timely insights. Located in Chiyoda, Tokyo, aiQ aims to cater specifically to investors focused primarily on U.S. stocks, offering coverage for over 10,000 securities 24/7 throughout the year.

Practical Applications of Analystant

Analystant is engineered as an Analyst Assistant, drastically streamlining the information-gathering processes and stock price forecasting for investors. Users can specify particular stocks and dates, prompting the service to digest vast amounts of news and data. The most relevant information is meticulously extracted, categorized based on potential price movers—both positive and negative—and ultimately synthesizes these insights to forecast the stock return for the upcoming week. This meticulous approach facilitates a more transparent understanding of the prediction's rationale, distinguishing it from conventional machine learning methods. Investors can choose to leverage the predictions based on clear, comprehensible grounds.

The utility of Analystant extends across a diverse audience, from professional fund managers to individual investors, enabling a wide range of market participants to enhance their decision-making processes.

Technological Features

The core competencies of Analystant lie in its advanced implementation that leverages a range of cutting-edge technologies, including Retrieval-Augmented Generation (RAG) and fine-tuning methodologies. While the integration of generative AI like ChatGPT has become increasingly vital within investment circles, the nuanced technologies applied in Analystant are not trivial to implement independently. Here are some of its distinctive attributes:

• - Built on large language models such as ChatGPT, Gemini, and Llama, ensuring exceptional language processing capabilities.
• - Forecasts generated strictly from curated, reliable stock news and financial data.
• - Employs fine-tuning learning on historical stock data and news correlations to enhance prediction accuracy by isolating impactful news.
• - Some models undergo continued pre-training through a study of existing analyst reports' styles and perspectives.

Comparative Analysis and Performance

To validate the effectiveness of its fine-tuning process, a straightforward backtest targeted major S&P 500 stocks (while ChatGPT was benchmarked against DOW30). The models employed for testing were the most recent fine-tunable versions as of September 2024, trained prior using historical data. By predicting stock returns over the next week every other Monday at 8 AM EST, stocks anticipated to rise over 4% were ‘longed’, while those projected to decline below -4% were ‘shorted'. The results showcased a commendable superior performance from the fine-tuned models compared to the raw models, which either remained static or fell.

The findings suggest that by incorporating additional data into existing large language models, analysts can enhance stock analysis precision. This presents a major advantage for firms opting to utilize Analystant, as they can conveniently adopt these sophisticated techniques within their operations.

Collaboration with Smart Plus

Moreover, aiQ’s groundbreaking service is set to be initially employed by Smart Plus Co., Ltd. within its discretionary management offerings. The AI’s capacity to autonomously generate analytical reports daily will significantly optimize the collection of news and ESG data, thereby supporting operational tasks like stock surveillance based on AI-derived investment assessments.

Future Developments

Looking ahead, aiQ plans to further diversify its data sets, incorporating Japanese news, alternative data, and ESG elements. There will also be provisions for users to input their unique news sources and data, offering an increasingly customizable assistant that can adapt to specific investment viewpoints.

About aiQ Co., Ltd.

Founded by Hiroki Yamamoto, a former member of the University of Tokyo's Matsuo Laboratory and Nomura Securities, aiQ commenced operations in June 2018, supported by investments from both the Matsuo Lab and Nomura Holdings. aiQ specializes in alternative data services, employing data scientists and financial engineers in the fintech landscape. The company also holds registration with Japan's Financial Services Agency for investment advisory and agency operations, offering a comprehensive range of services in collaboration with institutional investors worldwide.

For more information:

• - Company Name: aiQ Co., Ltd.
• - Phone: 050-3628-1456
• - Email: sales@aiq-index.com
• - Location: 1-10-6 Higashikanda, Chiyoda, Tokyo
• - CEO: Hiroki Yamamoto
• - Established: June 2018
• - Services: Alternative Data Sales, Tool Development, Investment Advisory
• - Website: aiQ