Exploring Diffusion Models for Generative Forecasting of Financial Charts
This work addresses the need for generative forecasting in finance, though it appears incremental by applying existing text-to-image models to a new domain.
The paper tackles the problem of predicting stock price trends by using diffusion models to generate future financial chart images from current ones and instruction prompts, introducing a simple evaluation method for the generated images.
Recent advances in generative models have enabled significant progress in tasks such as generating and editing images from text, as well as creating videos from text prompts, and these methods are being applied across various fields. However, in the financial domain, there may still be a reliance on time-series data and a continued focus on transformer models, rather than on diverse applications of generative models. In this paper, we propose a novel approach that leverages text-to-image model by treating time-series data as a single image pattern, thereby enabling the prediction of stock price trends. Unlike prior methods that focus on learning and classifying chart patterns using architectures such as ResNet or ViT, we experiment with generating the next chart image from the current chart image and an instruction prompt using diffusion models. Furthermore, we introduce a simple method for evaluating the generated chart image against ground truth image. We highlight the potential of leveraging text-to-image generative models in the financial domain, and our findings motivate further research to address the current limitations and expand their applicability.