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Can Machines Invest?

The Curious Investor

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Using Machine Learning to Predict Returns in Finance

It really comes down to signal to noise ratios. If Brian gave me a bunch of pictures of animals, I'd do a great job determining which ones are cats. Those are the types of environments where machine learning thrives. Compare that to predicting returns in finance. In finance and return prediction, the signal to noise ratio approaches zero. This is driven by economic features of markets.

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