York Stock Exchange, we can do that too in the similar manner by navigating through the regulatory filings, social media posts, real time news feed and other finance related metrics also involving elements such as correlations and valuations in order to predict investments which are considered undervalued.
Artificial Intelligence is already in use by institutional traders and are incorporated in tools used for stock trading. Some of which are completely automated and are used by Hedge Funds. Most of these systems can detect minute changes caused by a number of factors and historical data. As a result thousands of trades are performed on single day.
AI/Machine Learning Hedge Fund Index vs. quant and traditional hedge funds
An interesting example:
It was noticed that, every time Anne Hathaway was mentioned in the news, the share price of Berkshire Hathaway increased. This was probably because, there was some algorithm from a trading firm running automatic trades whenever it came across “Hathaway” in the news.
This particular example is a false positive and the fact that this system can run automatic trades based on real time news feed is pretty interesting. This technique requires data ingestion, sentiment analysis and entity detection.
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