FYI: Machine learning has done magic, such as beating human chess champions. But in finance, expectations for the technology may need to come down a notch or two, according to quantitative firm AQR.
In a report published Monday, AQR argues that the benefits of machine learning will likely apply to problems involving optimizing portfolio construction, such as risk management, transaction cost analysis, and factor construction — at least at first. That’s because markets are different from other areas where machine learning has come to offer up breakthrough research, according to “Can Machines Learn Finance?”
Regards,
Ted
https://www.institutionalinvestor.com/article/b1fsn64kfq8b5h/AQR-s-Problem-With-Machine-Learning-Cats-Morph-Into-Dogs
