The financial world is constantly evolving, and with the rise of technology, particularly machine learning (ML), a new era of investment strategies has emerged. Predicting stock prices, a task that has long fascinated investors and analysts, has become a focal point for ML applications. This blog post will delve deep into the world of machine learning in finance, exploring the potential and limitations of using ML algorithms to predict stock prices. What is Machine Learning? Machine learning is a subset of artificial intelligence (AI) that empowers computers to learn from data without explicit programming. Instead of relying on predefined rules, ML algorithms identify patterns, make predictions, and improve their performance over time through experience. These algorithms can be categorized into three main types: Supervised Learning: This type of ML involves training a model on labeled data, where both input features and corresponding output targets are provided. The...
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