This is a summary of links featured on Quantocracy on Wednesday, 03/17/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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4 simple ways to label financial data for Machine Learning [Quant Dare]We have seen in previous posts what is machine learning and even how to create our own framework. Combining machine learning and finance always leads to interesting results. Nevertheless, in supervised learning, it is crucial to find a set of appropriate labels to train your model. In todays post, we are going to see 3 ways to transform our data into a classification problem and 1 to transform
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How to Predict Stock Returns (using a simple model) [Alpha Architect]Jack Bogle, the founder of Vanguard, created a simple explanation for predicting future stock returns. The so-called Occams razor (law of parsimony) approach is an attempt to explain projected returns as simple as possible. Mr. Bogles model is pretty simple: Expected returns (nominal, annualized over the next 10 years) = Starting Dividend Yield + Earnings Growth rate + Percentage