All posts by drgarven

Text-reading machines can predict share prices

The latest on machine learning applications in finance…

“Investors and researchers have suspected for decades that text could be used to predict markets, some trying and failing. But applying machine-learning techniques originated by computer scientists, Harvard’s Zheng Tracy Ke, Yale’s Bryan T. Kelly, and Chicago Booth’s Dacheng Xiu have built a model that in early tests outperformed a similar strategy based on scores from RavenPack, the leading vendor of news-sentiment scores.”

Friendly reminder about this week’s assignments in Finance 4366

As I indicated in Saturday’s blog posting entitled “Problem Sets 4 and 5 are now available!”, Problem set 4, which is based on the “Properties of Stock Options” reading and lecture note, is due at the beginning of tomorrow’s Finance 4366 class meeting. Also, class will begin tomorrow with a quiz based on the assigned reading, which is Hull’s “Trading Strategies Involving Options” chapter.

On Thursday, Problem set 5, which is based on the “Trading Strategies Involving Options” reading and lecture note, will be due. That class meeting will be devoted to a review session for Midterm Exam #1, which is scheduled to occur in class on Tuesday, February 18.