Analysis of Hidden Markov Models and Support Vector Machines in Financial Applications
نویسندگان
چکیده
This paper presents two approaches in helping investors make better decisions. First, we discuss conventional methods, such as using the Efficient Market Hypothesis and technical indicators, for forecasting stock prices and movements. We will show that these methods are inadequate, and thus, we need to rethink the issue. Afterwards, we will discuss using artificial intelligence, such as Hidden Markov Models and Support Vector Machines, to help investors gather and compute enormous amount of data that will enable them to make informed decisions. We will leverage the Simlio engine to train both the HMM and SVM on past datasets and use it to predict future stock movements. The results are encouraging and they warrant future research on using AI for market forecasts. Simlio LLC is a startup co-founded by Jerry Hong. It is currently a stock research platform on the web that enables users to draw graphs at ease as well as perform intensive formula calculations to see how well an idea would profit over time.
منابع مشابه
Application of Artificial Neural Networks and Support Vector Machines for carbonate pores size estimation from 3D seismic data
This paper proposes a method for the prediction of pore size values in hydrocarbon reservoirs using 3D seismic data. To this end, an actual carbonate oil field in the south-western part ofIranwas selected. Taking real geological conditions into account, different models of reservoir were constructed for a range of viable pore size values. Seismic surveying was performed next on these models. F...
متن کاملA Comparative Approximate Economic Behavior Analysis Of Support Vector Machines And Neural Networks Models
متن کامل
Exploiting Support Vector Machines for Speaker Verifi
Hidden Markov Models have been proved to be an efficient way for statistically modeling sequence signals. And the Support Vector Machines seem to be a promising candidate to perform the classification task. A new method combining support vector machine and hidden Markov models is proposed. The output of support vector machines are modified as posterior probability using sigmoid function, and ac...
متن کاملA Discriminative Framework for Detecting Remote Protein Homologies
A new method for detecting remote protein homologies is introduced and shown to perform well in classifying protein domains by SCOP superfamily. The method is a variant of support vector machines using a new kernel function. The kernel function is derived from a generative statistical model for a protein family, in this case a hidden Markov model. This general approach of combining generative m...
متن کاملUsing the Fisher Kernel Method to Detect Remote Protein Homologies
A new method, called the Fisher kernel method, for detecting remote protein homologies is introduced and shown to perform well in classifying protein domains by SCOP superfamily. The method is a variant of support vector machines using a new kernel function. The kernel function is derived from a hidden Markov model. The general approach of combining generative models like HMMs with discriminati...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2010