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Machine Learning in Systematic Equity Allocation: A Model Comparison
Journal article   Peer reviewed

Machine Learning in Systematic Equity Allocation: A Model Comparison

Tony Guida and Guillaume Coqueret
Wilmott, Vol.2018(98), pp.24-32
01/11/2018

Abstract

Recent criticisms suggest that Machine Learning‐based approaches only suite predicting very short‐term price movements. Tony Guida and Guillaume Coqueret apply well‐known ML algorithms to systematic equity investment, presenting a methodology which shows a critical stage of feature and label engineering, a stet that helps uncover hidden structures in the equity market space. Only then, the authors argue, can a modern quantitative approach make accurate long‐term predictions.
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