Year: 2024
Type: article
Abstract: The rapid advancement of machine learning (ML) technologies has transformed the landscape of financial data prediction, offering innovative solutions for forecasting market trends, assessing risks, and optimizing investment strategies. This study explores various machine learning models and their effectiveness in predicting financial outcomes, emphasizing the importance of feature selection, model complexity, and data preprocessing techniques. By analyzing historical financial datasets, we evaluate the performance of algorithms such as linear regression, decision trees, support vector machines, and neural networks. Our findings demonstrate that ensemble methods, particularly random forests and gradient boosting, outperform traditional models by capturing complex patterns and interactions within the data. Furthermore, the integration of advanced techniques, such as deep learning and natural language processing, enhances predictive accuracy by incorporating alternative data sources, including social media sentiment and macroeconomic indicators. We also address the challenges associated with model interpretability and the risks of overfitting in dynamic financial environments. Through comprehensive experimentation, this research identifies key strategies for improving model robustness and adaptability, which are critical for real-time financial decision-making. The insights gained from this study contribute to the growing body of knowledge on the application of machine learning in finance, offering practitioners and researchers actionable recommendations for developing predictive models that drive informed investment and risk management strategies.
Authors: Vamsee Krishna Ravi, Digneshkumar Khatri, Sowmith Daram, Dr. Sanjouli Kaushik, Prof. (Dr) Sangeet Vashishtha, Prof. (Dr) MSR Prasad
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4414829574