Talking AI: who’s really walking the walk on machine learning? | Global New Ideas - citywireselector.com

This article originally appeared in the February edition of Citywire Selector magazine.

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There’s been a lot of hype about using machine learning in asset management but few players are stepping up. Our columnist looks at how selectors can home in on bona fide practitioners, as Elisabetta Basilico, Citywire Selector reports.

Talking AI: who’s really walking the walk on machine learning?
Photo:  citywireselector.com

These are traditional statistical techniques used to develop predictive models to select stocks that are supposed to outperform the market – think smart beta products. They are also deployed to predict whether an index or an asset class will gain or lose the next day, week or month – think tactical asset allocation solutions. They work best if certain assumptions like normality or linearity in the data are met. And most of the time you can use Microsoft Excel to model these techniques...

Machine learning, Big Data and AI are the buzzwords of the moment and are expected to reshape the future of investing.
The big question is whether the industry is actually applying these techniques and coming up with effective fintech solutions or just talking about it.
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Source: citywireselector.com