Hands-On Artificial Intelligence for Beginners

Deep learning in asset management

In financial services, a portfolio is a range of investments that are held by a person or organization. To achieve the best return possible (as anyone would want to!), portfolios are optimized by deciding how much capital should be invested into certain financial assets. In portfolio optimization theory, the objective is to have an allocation of assets that minimize risk and maximize reward. We would therefore need to create an algorithm that predicts the expected risks and rewards for each asset so that we may find the best optimization. Traditionally, this work is done by a financial advisor, however, AI has been shown to outperform many traditional advisor-built portfolios.

Lately, there have been several ...