Artificial Intelligence in Finance
We will start with one investment example and review how AI could assist in the different parts of the investment process
Statistics builds the portfolio theory of the 1950’s; with powerful data science techniques, we can obtain enhanced results. We will discuss the example of financial crises
Non-standard data sets, not based on accounting information, can be useful to predict accounting information, and stock performance.
Derivatives are based on dependence structures, which model relationships. Random forests give us a powerful way to calculate them
|Risk & return
It is often believed that AI can be used to predict the stock market behaviour. We will see what neural networks are and how they can be employed and why they don’t usually work for prediction of stock performance. We will, however, provide some objectives which can be achieved with neural networks.
Modern decisions are taken with information which is derived from word databases, not just numbers. ESG is an example, and is based on the 17 sustainability goals of the United Nations