If there was an AI winter, we are clearly in the peak of its summer. I do not know if we will ever build something as Skynet, but we are going to build much simpler things that will change the course of our lives. This shows a new application of analytics in the field of finance. A radical new approach that let flourish a new face of finance never seen…Continue
Added by Ramon Serrallonga on February 15, 2019 at 6:06am — No Comments
Deep Learning is picking momentum in Quantitative Finance, outside the obvious application to the prediction of asset prices (where to my knowledge it is not particularly effective) and spreading into the more serious application area of option pricing and risk management.
These two recent papers clearly demonstrate the benefits of DL as a pricing technology alternative to the classical FDM and Monte-Carlo in certain contexts:…Continue
Added by Antoine Savine on January 11, 2019 at 5:30am — No Comments
I thought I would follow on my first blog posting with a follow-up on a claim in the post that going returns followed a truncated Cauchy distribution in three ways. The first way was to describe a proof and empirical evidence to support it in a population study. The second was to discuss the consequences by performing simulations so that financial modelers using things such as the Fama-French, CAPM or APT would understand the full consequences of that decision. The third was to discuss…Continue
Added by David Harris on December 27, 2018 at 7:32pm — No Comments
In 1963 Benoit Mandelbrot published an article called “The Variation of Certain Speculative Prices.” It is a response to the forming theory that would become Modern Portfolio Theory. Oversimplified, Mandelbrot’s argument could be summarized as “if this is your theory, then this cannot be your data, and this is your data.” This issue has haunted models such as Black-Scholes, the CAPM, the APT and Fama-French. None of them have survived validation tests. Indeed, a good argument can be…Continue
Added by David Harris on December 10, 2018 at 2:00pm — No Comments
Machine learning in finance may work magic, even though there is no magic behind it (well, maybe just a little bit). Still, the success of machine learning project depends more on building efficient infrastructure, collecting suitable datasets, and applying the right algorithms.
Machine learning is making significant inroads in the financial services industry. Let’s see why financial companies should care, what solutions they can implement with AI and machine learning, and how exactly…Continue
Added by Tetiana Boichenko on July 13, 2018 at 4:12am — No Comments
In recent years, the ability of data science and machine learning to cope with a number of principal financial tasks has become an especially important point at issue. Companies want to know more what improvements the technologies bring and how they can reshape their business strategies.
To help you answer these questions, we…Continue
Added by Igor Bobriakov on May 14, 2018 at 4:30am — No Comments
It’s 5:05pm EST. Bob, CFO of ABC Inc is about to get on an earnings call after just reporting a 20% miss on earnings due to slower revenue growth than forecasted. Company ABC’s stock price is plummeting, down 25% in extended hour trading. The board is furious and investors demand answers on the discrepancies.
Inaccurate revenue forecast remains one of the…Continue
Added by Winnie Cheng on April 4, 2016 at 10:43am — No Comments
Please watch this video and learn how we take multiple channels of data: Bank systems, IVR, Call Center Notes, Clickstream, and others to perform behavioral churn prediction. We do this at data scale and not using samples.
Added by John Thuma on July 11, 2015 at 9:30am — No Comments