Financial Engineering with Machine Learning and Python: Or How to Build Your Own Quantitative Hedge Fund

Apply machine learning and AI to real financial challenges, from data analysis to strategy automation, and gain practical skills to thrive in investment, risk management, and quantitative finance roles

Key Features

Based on the author’s Cornell MFE course and proven classroom success

Cutting-edge material in both finance and machine learning

Includes exclusive access to a website with additional learning resources

Book DescriptionIn a world where machine learning and AI are becoming increasingly prevalent, it is crucial not to be left behind. This book goes beyond the typical machine learning and Python books by incorporating in-depth finance content to provide readers with a unique understanding of how these technologies intersect in the financial realm.

Starting with a review of the basics of financial and econometric analyses and coding, readers will quickly and intuitively progress to more sophisticated techniques. The book equips readers with the necessary knowledge to successfully apply machine learning and AI to various finance-related problems. Instead of solely focusing on the intricacies of machine learning algorithms, this book emphasizes the strategic use of machine learning and python as enablers for solving real-world finance problems.

By the end of the book, readers will not only have a solid grasp of different types of advanced AI mechanisms, but they will also possess the ability to compare various machine learning techniques and select the most appropriate one for the specific problem at hand. Bridging the gap between theory and practice, readers will be able to build their own efficient and effective machine learning models to tackle the challenges and complexities of the finance industry.

What you will learn

Learn the fundamentals of financial analysis with Python

Understand different types of advanced machine learning and AI mechanisms and how they fit into today's quantitative research frameworks

Select the best machine learning techniques for the financial problem at hand

Analyze financial data and structure sound forecasts

Build backtests and reports required by investors

Develop in-house AI models that automate the processes

Who this book is forThis book is ideal for aspiring quants, financial engineers, data scientists, and investment professionals looking to apply machine learning and AI in real-world finance. It also serves quantitative finance students and fintech practitioners aiming to build their own data-driven trading strategies or hedge funds. A basic understanding of Python, probability, and linear algebra is helpful but not required