Application of machine learning in stock selection

Abstract

With the development of artificial intelligence technology, machine learning has achieved very good results in the field of stock selection. This paper mainly studies the application of linear model, clustering, support vector machine, random forest, neural network and deep learning methods in the field of stock selection. The main contribution of this paper is to provide a new idea for traditional quantitative investors, so that they can build a more efficient stock selection model in practical application. The experimental results show that the stock selection model constructed by these six machine learning methods can obtain higher return and stability.

Keywords

• stock selection
• machine learning
• clustering
• svm
• random forest
• neural network
• deep learning