What are the applications of machine learning, deep learning and/or artificial intelligence technologies to securities market analysis, including stock market analysis, bonds, derivatives?
ICT information technologies have already been implemented in banking and large companies operating in non-financial sectors of the economy since the beginning of the third technological revolution. Subsequently, the Internet was used to develop online and mobile banking. Perhaps in the future, virtual banking will be developed on the basis of the increasing scale of application of technologies typical of the current fourth technological revolution and the growing scale of implementation of Industry 4.0 technologies to businesses operating in both the financial and non-financial sectors of the economy. In recent years, various technologies for advanced, multi-criteria data processing have increasingly been applied to business entities in order to improve organisational management processes, risk management, customer and contractor relationship management, management of supply logistics systems, procurement, production, etc., and to improve the profitability of business processes. In order to improve the profitability of business processes, improve marketing communications, offer products and services remotely to customers, etc., such Industry 4.0 technologies as the Internet of Things, cloud computing, Big Data Analytics, Data Science, Blockchain, robotics, multi-criteria simulation models, digital twins, but also machine learning, deep learning and artificial intelligence are increasingly being used. In the field of improving the processes of equity investment management, the processes of carrying out economic and financial analyses, fundamental analyses concerning the valuation of specific categories of investment assets, including securities, i.e. improving the processes carried out in investment banking, ICT information technologies and Industry 4.0 have also been used for many years now. In this connection, there are also emerging opportunities to apply machine learning, deep learning and/or artificial intelligence technologies to the analysis of the securities market, including the analysis of the stock market, bonds, derivatives, etc., i.e. key aspects of business analytics carried out in investment banking. Improving such analytics through the use of the aforementioned technologies should, in addition to the issue of optimising investment returns, also take into account important aspects of the financial security of capital markets transactions, including issues of credit risk management, market risk management, systemic risk management, etc.
In view of the above, I would like to address the following question to the esteemed community of scientists and researchers:
What are the applications of machine learning, deep learning and/or artificial intelligence technologies for securities market analysis, including equity, bond, derivatives market analysis?
What is your opinion on the subject?
What do you think about this topic?
Please respond,
I invite you all to discuss,
Thank you very much,
Best regards,
Dariusz Prokopowicz
The majority of financial transactions at the present time have become electronic and the total period it takes to execute a stock trade has been significantly reduced to nanoseconds.
The academic jury is still out on the market volatility (risk) consequences of AI trading in the stock market.
In fact, a hybrid system may be a more sustainable future for the finance industry. Thus, the direction of higher education may change towards infusion of data science (FinTech) applications where machines (AIs) and humans coexist, i.e. personal contact and human discretion will be imperative at certain stages of investing.
In this sense, dear Dariusz Prokopowicz , tech-know-logical speed cannot guarantee quality investments, i.e. the creative destruction of the finance industry depends on human macro-prudence, in terms of choosing right investment directions, where the right steps decide and not just the speed of transactions.
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It is precisely the necessity of making profits and avoiding losses that gives to the consumers a firm hold over the entrepreneurs and forces them to comply with the wishes of the people.
Lv Mises
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