Comparative Evaluation of Embedding Representations for Financial News Sentiment Analysis

• URL: http://arxiv.org/abs/2512.13749v1
• Date: Mon, 15 Dec 2025 04:52:30 GMT
• Title: Comparative Evaluation of Embedding Representations for Financial News Sentiment Analysis
• Authors: Joyjit Roy, Samaresh Kumar Singh,
• Abstract summary: This study provides a comparative evaluation of embedding-based methods for financial news sentiment classification in resource-constrained environments.<n>Models performing worse than trivial baselines despite strong validation metrics.<n>Findings offer empirical evidence that embedding quality alone cannot address fundamental data scarcity in sentiment classification.
• Score: 0.0
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Financial sentiment analysis enhances market understanding; however, standard natural language processing approaches encounter significant challenges when applied to small datasets. This study provides a comparative evaluation of embedding-based methods for financial news sentiment classification in resource-constrained environments. Word2Vec, GloVe, and sentence transformer representations are evaluated in combination with gradient boosting on manually labeled headlines. Experimental results identify a substantial gap between validation and test performance, with models performing worse than trivial baselines despite strong validation metrics. The analysis demonstrates that pretrained embeddings yield diminishing returns below a critical data sufficiency threshold, and that small validation sets contribute to overfitting during model selection. Practical application is illustrated through weekly sentiment aggregation and narrative summarization for market monitoring workflows. The findings offer empirical evidence that embedding quality alone cannot address fundamental data scarcity in sentiment classification. For practitioners operating with limited resources, the results indicate the need to consider alternative approaches such as few-shot learning, data augmentation, or lexicon-enhanced hybrid methods when labeled samples are scarce.

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