Model error analysis provides insight into how model performance changes over time on normalized data. This insight allows us to monitor whether the model is consistent and stable in its predictions. Specifically, we look at two indicators. Mean absolute error… Read More »Model error analysis
Signal direction understanding For building investment strategies, it is important to understand that factor models can indicate two signal directions. The direction of the signal simply tells us whether the performance of the LongShort portfolio reaches plus values or vice… Read More »Creation of Long/Short investment strategies
Factor investing is an investment strategy that focuses on key performance drivers among asset classes. In the classical Fama-French 5-Factor Investing approach, those factors were: value, quality, momentum, size, and minimum volatility. However, in Analytical Platform, we use a slightly different model, let’s call it the 6-Factor (Groups) Model.
Read More »Analytical Platform’s 6-Factor (Groups) Investment Model
The world of statistics is filled with many complex concepts, but few are as misunderstood as the P-value. Despite its widespread use in research and quantitative analysis, it often confuses even the most seasoned statisticians. So, let’s break it down and make it easy to understand how the P-value can be used in factor analysis and AI-based stock analysis.
Read More »Understanding P-Value in AI Stock Analysis: A Simplified Approach
Statistics, as a branch of mathematics, is a powerful tool that aids in the interpretation and understanding of numerical data. One of the fundamental concepts in statistics is the T-statistic, which plays a crucial role in hypothesis testing and regression… Read More »Understanding T-statistic in AI Stock Analysis: A Simplified Approach
In this guide we will look at how to fund the Interactive Brokers account for non-US users. The first step after deciding that you want to start trading is funding your brokerage account. All of the Interactive Brokers’ accounts are… Read More »How to Fund the Interactive Brokers Account
“Best stock” is a term that is often advertised in a variety of contexts, and investors should pay close attention to how such an evaluation was made. The best stocks for dividends will probably be different than the best for… Read More »Best stocks picked by AI
The Fama-French method is a widely used model in portfolio management. Developed by Nobel laureate Eugene Fama and researcher Kenneth French, the model expands on the Capital Asset Pricing Model (CAPM) by adding two factors: size and value. Here is how you… Read More »How to Use the Fama-French Method in Real-Life Portfolio Management
Artificial Intelligence (AI) in the stock market industry could be a game changer, allowing investors to make data-driven investment decisions without any bias.I’ve always been intrigued by leveraging the power of artificial intelligence for stock market analysis and for building… Read More »Stock Analysis with the Power of AI
Greeting investors! Welcome to our Newsletter, in which we look at the Trending Factors from the second month of 2024. Factors are the building blocks for AI-powered stock market analysis, stock picking, and the creation of robust investment strategies.