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Same Day, Same Story; One Day Ahead, a Different Signal: The Dual Validity of Financial Sentiment

arxiv.org/abs/2609.11144

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Updated 3 h ago · first seen 11 Sept 2026

paper_01M294G55CNFQ9TYEAGTV7YYN8

Published
11 Sept 2026
T1 · 3 h ago
arXiv
2609.11144
T1 · 3 h ago
Category
cs.AI
T1 · 3 h ago

Abstract

Financial NLP has a standard workflow: validate a sentiment tool against human labels, then trust it to extract market signal. This assumes the two evaluations measure the same thing. We test that assumption in a setting where both can be measured at once: a corpus of securities class actions (2002-2025) linking 70,500 X messages to abnormal stock returns, with a single-annotator human labelled gold sample. Running five instruments (VADER, Loughran-McDonald, FinBERT, Twitter-RoBERTa, and an LLM annotator) through one identical pipeline, we find that the relationship between construct and predictive validity depends on the sampling convention and score representation. Under conventional method-specific sampling, human agreement aligns more closely with graded same-day associations than with one-day leads. On a fixed-n panel, however, agreement has similar graded rank correlations at both horizons, while the coarse ordering remains weak. Benchmark agreement therefore establishes semantic validity but does not by itself determine predictive rankings. In a conversation that is 17.6% spam, message volume predicts neither market damage nor settlement size.

Authors 3

AS Aravinthkakshan, Laven Srivastava, Harsh Nandwani

Specification

Official page

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

Arxiv announce type
cross

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

arXiv id
2609.11144

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

Categories
cs.AI, cs.CL, cs.SI

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

PDF

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

Primary category
cs.AI

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

Published
11 Sept 2026

Source:arXiv (Atom API + RSS)T1observed 3 h agohigh

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Provenance

Attributed facts

9

Source tiers

T19

Freshest observation

3 h ago

Conflicts

None