Machine Learning for Finance

There are two types of machine learning techniques for applications in financial econometrics:

1. When the dependent variable is of qualitative nature i.e. categorical we make use of "Classification Techniques" such as Support Vector Machine, K-means, Naive Bayes, Logistic Regression, etc.

2. When the dependent variable is of quantitative nature we make use of "Regression Techniques" such as Support Vector Regression, Random Forest, Boosting, etc.

Python and R codes for these models are available on request.