EODHD & ChatGPT: AI Powered Finance

Andrei Paulavets
Investment professional with a strong engineering background, leveraging machine learning and generative AI to enhance investor financial analysis and data-driven decision-making in financial markets.

Introduction

EOD Historical Data (EODHD) and OpenAI’s ChatGPT are two powerful tools that, when used together, could redefine the landscape of financial analytics and decision-making processes.

General information

EODHD provides a wealth of financial market data, including historical stock prices, indices, ETFs, and mutual funds, from over 60 global exchanges. Such comprehensive coverage empowers businesses and individuals with detailed insights into market trends and patterns. However, the sheer volume of data can be overwhelming and challenging to process manually or even using conventional data analysis methods.

Here, ChatGPT, a highly advanced language model, comes into play. By integrating ChatGPT with EODHD, users can automate the process of analyzing, understanding, and making predictions based on the vast dataset from EODHD. ChatGPT can convert raw financial data into easily digestible reports, analyze historical market trends, and even predict future outcomes based on past data.

You can use ChatGPT with the data imported from our APIs to Google Sheets, Python, or other solutions.

There are several models which you can use for analysis the best one will be ChatGPT 4.0 which has proven to be 40% more accurate to perform analytical analysis in comparison to ChatGPT 3.5.

Furthermore, using natural language processing, ChatGPT can provide context-aware responses to specific inquiries about the data. For instance, if a user asks, “What was the trend for the Apple stock price in the last quarter?”, ChatGPT can swiftly analyze the EODHD data and provide a precise answer. This amalgamation of big data and AI reduces the time and effort required for complex data processing, enhancing operational efficiency. You simply need to feed the model with data from the End-of-Day API, an example of the request is the following: 

https://eodhistoricaldata.com/api/eod/AAPL.US?api_token=demo

Moreover, ChatGPT’s ability to generate human-like text can revolutionize how financial advice is delivered. It can provide personalized financial insights and recommendations based on EODHD data, delivering a user-friendly and engaging experience.

Integration

The integration of EODHD and ChatGPT could serve multiple sectors. Investment firms can leverage it for better portfolio management and risk assessment. Individual investors can use it for personalized financial guidance. Economists could utilize it to predict market trends, while academia could tap into it for innovative research.

Here are a few potential use cases:

  1. Financial Data Interpretation: ChatGPT can assist in interpreting financial data such as stock market trends, company reports, financial statements, and economic indicators. Users can ask questions about specific data points, trends, or patterns to gain insights and make informed decisions.
  2. Investment Research: ChatGPT can help investors with their research process by providing information on various investment opportunities. Users can ask about the performance of specific stocks, industries, or sectors, as well as inquire about historical data, valuation metrics, and analyst opinions.
  3. Risk Assessment: ChatGPT can assist in assessing financial risks by analyzing relevant data. It can provide insights into risk factors, historical market behavior, and potential vulnerabilities. Users can ask questions about risk metrics, stress testing scenarios, or risk management strategies.
  4. Financial Planning and Budgeting: ChatGPT can help individuals or businesses with financial planning and budgeting. It can provide guidance on setting financial goals, creating budgets, optimizing expenses, and managing cash flow. Users can ask for advice on budget allocation, savings strategies, or specific financial planning techniques.
  5. Fraud Detection: ChatGPT can assist in detecting financial fraud by analyzing patterns, anomalies, and suspicious transactions. It can help identify potential red flags, irregularities, or deviations from expected behavior in financial data. Users can ask questions about fraud detection techniques, risk mitigation strategies, or specific fraud cases.
  6. Sentiment Analysis: ChatGPT can analyze news articles, social media feeds, and other textual data to assess the sentiment and market impact. It can help identify public perception, market sentiment, and potential market-moving events. Users can ask about the sentiment around specific companies, industries, or financial instruments.
  7. Financial Education: ChatGPT can be utilized as an educational tool to provide explanations, tutorials, and examples on various financial topics. It can help users understand concepts such as investing, personal finance, financial markets, and economic principles.

Register & Get Data

EODHD Use case

ChatGPT can interpret fundamental financial data from our Fundamentals API. Using filter parameters in URL requests to our API you can limit the data the Language Model will analyze. An example of the request is the following:

https://eodhistoricaldata.com/api/fundamentals/AAPL.US?api_token=demo&filter=General::Code,General::Name,General::Exchange,General::Description,Financials::Balance_Sheet::yearly::2022-09-30,Financials::Balance_Sheet::yearly::2021-09-30

And using the prompt “Can you analyze the data Graham style” you’ll get the following result:

"Certainly! Here's a Graham-style analysis of Apple Inc.'s balance sheet data for the years 2021 and 2022:

Total Assets:
2021: $351,002,000,000.00
2022: $352,755,000,000.00
Graham would appreciate the steady increase in total assets, indicating potential growth in the company's underlying value. However, it is essential to assess the composition and quality of these assets to determine their true worth."

You could play with prompts, datasets, and the temperature of the model to provide you analysis you are looking for.

It is important to note that while ChatGPT can provide valuable insights and analysis, it should not replace professional financial advice. Users should always consult with qualified financial professionals for personalized recommendations and decision-making.

Register & Get Data

Conclusion

In conclusion, the potential of coupling EODHD and ChatGPT is immense. It presents a compelling case for the innovative application of AI in finance, enabling businesses and individuals to make more informed and data-backed decisions.