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Wait But... How Do I Invest Using AI? w/ Hari Krishnan & Vasant Dhar PhD

Real Vision: Finance & Investing

00:00

The Importance of Model Stability

Hari: If model stability is the only objective, then basically what you get is beta and we all just take a nap and don't do anything. And so you can't optimize over stability, but you must take it into account. You want your machine to be repetitive in the way that it looks at things without over emphasis on a particular data set that it's trained. So how do you try and derive alpha from a model that the longer term data stability is? Hari: The more effective states would be essentially by and hold. Well, if I sent the will add to this, but model stability isn't the only thing you optimize over. Right.

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