Category: MACHINE LEARNING

Machine Learning in Finance

There are many machine learning applications in the finance world. The most common machine learning application found in finance is predictive analytics, which is used to predict future events based on past data. Predictive analytics can be applied to any number of areas within a financial institution including loan origination, …

Machine Learning: A Beginner’s Guide

Machine learning is a field of computer science that has been gaining popularity in the last few years.  It’s is a branch of Artificial Intelligence (AI) that uses algorithms to learn from data without having explicit instructions on how to do so as traditional programming does. Machine Learning provides systems …

Econometrics and Machine Learning

Both econometrics and machine learning provide a way for analysts to have a glimpse of the future, and on that basis, make predictions. As research methodologies, both strive towards the same goal: inducing new knowledge. And, for this purpose, they adopt statistical tools, making for precision in scientific research. However, …

Using the Gaussian Mixture Models to Identify Market Regimes

Characterizing the market is an important step in trading system development. Currently, there exist a couple of approaches for identifying market regimes such as using trend and/or volatility filters, machine learning techniques, etc. Reference proposed an approach that uses the Gaussian Mixture Models to identify market regimes by dividing …

Econometrics and Data Science

Data science and machine learning have allowed analysts to process data at more efficient rates. Due to the abundance of tools at disposal currently, the process has become much straightforward. Data science has contributed to many other fields, including economics. More particularly, it has enhanced how analysts use econometrics to …

Are AI-Powered Hedge Funds Outperforming?

Last month, institutionalinvestor.com reported that AI-powered hedge funds outperformed their peers, Hedge funds with artificial intelligence capabilities showed a huge competitive edge over investors that didn’t use AI, new research indicates. AI-led hedge funds produced cumulative returns of 34 percent in the three years through May, a report Tuesday from …