Machine Learning and Data Science Blueprints for Finance


Book Description

Over the next few decades, machine learning and data science will transform the finance industry. With this practical book, analysts, traders, researchers, and developers will learn how to build machine learning algorithms crucial to the industry. You’ll examine ML concepts and over 20 case studies in supervised, unsupervised, and reinforcement learning, along with natural language processing (NLP). Ideal for professionals working at hedge funds, investment and retail banks, and fintech firms, this book also delves deep into portfolio management, algorithmic trading, derivative pricing, fraud detection, asset price prediction, sentiment analysis, and chatbot development. You’ll explore real-life problems faced by practitioners and learn scientifically sound solutions supported by code and examples. This book covers: Supervised learning regression-based models for trading strategies, derivative pricing, and portfolio management Supervised learning classification-based models for credit default risk prediction, fraud detection, and trading strategies Dimensionality reduction techniques with case studies in portfolio management, trading strategy, and yield curve construction Algorithms and clustering techniques for finding similar objects, with case studies in trading strategies and portfolio management Reinforcement learning models and techniques used for building trading strategies, derivatives hedging, and portfolio management NLP techniques using Python libraries such as NLTK and scikit-learn for transforming text into meaningful representations




SUPERVISED LEARNING ALGORITHMS CLASSIFICATION AND REGRESSION ALGORITHMS


Book Description

The branch of computer science known as machine learning is one of the subfields that is increasing at one of the fastest rates now and has various potential applications. The technique of automatically locating meaningful patterns in vast volumes of data is referred to as pattern recognition. It is possible to provide computer programs the ability to learn and adapt in response to changes in their surroundings via the use of tools for machine learning. As a consequence of machine learning being one of the most essential components of information technology, it has therefore become a highly vital, though not always visible, component of our day-to-day life. As the amount of data that is becoming available continues to expand at an exponential pace, there is good reason to believe that intelligent data analysis will become even more common as a critical component for the advancement of technological innovation. This is because there is solid grounds to believe that this will occur. Despite the fact that data mining is one of the most significant applications for machine learning (ML), there are other uses as well. People are prone to make mistakes while doing studies or even when seeking to uncover linkages between a lot of distinct aspects. This is especially true when the analyses include a large number of components. Data Mining and Machine Learning are like Siamese twins; from each of them, one may get a variety of distinct insights by using the right learning methodologies. As a direct result of the development of smart and nanotechnology, which enhanced people's excitement in discovering hidden patterns in data in order to extract value, a great deal of progress has been achieved in the field of data mining and machine learning. These advancements have been very beneficial. There are a number of probable explanations for this phenomenon, one of which is that people are currently more inquisitive than ever before about identifying hidden patterns in data. As the fields of statistics, machine learning, information retrieval, and computers have grown increasingly interconnected, we have seen an increase in the led to the development of a robust field that is built on a solid mathematical basis and is equipped with extremely powerful tools. This field is known as information theory and statistics. The anticipated outcomes of the many different machine learning algorithms are culled together into a taxonomy that is used to classify the many different machine learning algorithms. The method of supervised learning may be used to produce a function that generates a mapping between inputs and desired outputs. The production of previously unimaginable quantities of data has led to a rise in the degree of complexity shown across a variety of machine learning strategies. Because of this, the use of a great number of methods for both supervised and unsupervised machine learning has become obligatory. Because the objective of many classification challenges is to train the computer to learn a classification system that we are already familiar with, supervised learning is often used in order to find solutions to problems of this kind. The goal of unearthing the accessibility hidden within large amounts of data is well suited for the use of machine learning. The ability of machine learning to derive meaning from vast quantities of data derived from a variety of sources is one of its most alluring prospects. Because data drives machine learning and it works on a large scale, this goal will be achieved by decreasing the amount of dependence that is put on individual tracks. Machine learning functions on data. Machine learning is best suited towards the complexity of managing through many data sources, the huge diversity of variables, and the amount of data involved, since ML thrives on larger datasets. This is because machine learning is ideally suited towards managing via multiple data sources. This is possible as a result of the capacity of machine learning to process ever-increasing volumes of data. The more data that is introduced into a framework for machine learning, the more it will be able to be trained, and the more the outcomes will entail a better quality of insights. Because it is not bound by the limitations of individual level thinking and study, ML is intelligent enough to unearth and present patterns that are hidden in the data.




Machine Learning Algorithms


Book Description

Build strong foundation for entering the world of Machine Learning and data science with the help of this comprehensive guide About This Book Get started in the field of Machine Learning with the help of this solid, concept-rich, yet highly practical guide. Your one-stop solution for everything that matters in mastering the whats and whys of Machine Learning algorithms and their implementation. Get a solid foundation for your entry into Machine Learning by strengthening your roots (algorithms) with this comprehensive guide. Who This Book Is For This book is for IT professionals who want to enter the field of data science and are very new to Machine Learning. Familiarity with languages such as R and Python will be invaluable here. What You Will Learn Acquaint yourself with important elements of Machine Learning Understand the feature selection and feature engineering process Assess performance and error trade-offs for Linear Regression Build a data model and understand how it works by using different types of algorithm Learn to tune the parameters of Support Vector machines Implement clusters to a dataset Explore the concept of Natural Processing Language and Recommendation Systems Create a ML architecture from scratch. In Detail As the amount of data continues to grow at an almost incomprehensible rate, being able to understand and process data is becoming a key differentiator for competitive organizations. Machine learning applications are everywhere, from self-driving cars, spam detection, document search, and trading strategies, to speech recognition. This makes machine learning well-suited to the present-day era of Big Data and Data Science. The main challenge is how to transform data into actionable knowledge. In this book you will learn all the important Machine Learning algorithms that are commonly used in the field of data science. These algorithms can be used for supervised as well as unsupervised learning, reinforcement learning, and semi-supervised learning. A few famous algorithms that are covered in this book are Linear regression, Logistic Regression, SVM, Naive Bayes, K-Means, Random Forest, TensorFlow, and Feature engineering. In this book you will also learn how these algorithms work and their practical implementation to resolve your problems. This book will also introduce you to the Natural Processing Language and Recommendation systems, which help you run multiple algorithms simultaneously. On completion of the book you will have mastered selecting Machine Learning algorithms for clustering, classification, or regression based on for your problem. Style and approach An easy-to-follow, step-by-step guide that will help you get to grips with real -world applications of Algorithms for Machine Learning.




Fundamentals and Methods of Machine and Deep Learning


Book Description

FUNDAMENTALS AND METHODS OF MACHINE AND DEEP LEARNING The book provides a practical approach by explaining the concepts of machine learning and deep learning algorithms, evaluation of methodology advances, and algorithm demonstrations with applications. Over the past two decades, the field of machine learning and its subfield deep learning have played a main role in software applications development. Also, in recent research studies, they are regarded as one of the disruptive technologies that will transform our future life, business, and the global economy. The recent explosion of digital data in a wide variety of domains, including science, engineering, Internet of Things, biomedical, healthcare, and many business sectors, has declared the era of big data, which cannot be analysed by classical statistics but by the more modern, robust machine learning and deep learning techniques. Since machine learning learns from data rather than by programming hard-coded decision rules, an attempt is being made to use machine learning to make computers that are able to solve problems like human experts in the field. The goal of this book is to present a??practical approach by explaining the concepts of machine learning and deep learning algorithms with applications. Supervised machine learning algorithms, ensemble machine learning algorithms, feature selection, deep learning techniques, and their applications are discussed. Also included in the eighteen chapters is unique information which provides a clear understanding of concepts by using algorithms and case studies illustrated with applications of machine learning and deep learning in different domains, including disease prediction, software defect prediction, online television analysis, medical image processing, etc. Each of the chapters briefly described below provides both a chosen approach and its implementation. Audience Researchers and engineers in artificial intelligence, computer scientists as well as software developers.




Machine and Deep Learning Algorithms and Applications


Book Description

This book introduces basic machine learning concepts and applications for a broad audience that includes students, faculty, and industry practitioners. We begin by describing how machine learning provides capabilities to computers and embedded systems to learn from data. A typical machine learning algorithm involves training, and generally the performance of a machine learning model improves with more training data. Deep learning is a sub-area of machine learning that involves extensive use of layers of artificial neural networks typically trained on massive amounts of data. Machine and deep learning methods are often used in contemporary data science tasks to address the growing data sets and detect, cluster, and classify data patterns. Although machine learning commercial interest has grown relatively recently, the roots of machine learning go back to decades ago. We note that nearly all organizations, including industry, government, defense, and health, are using machine learning to address a variety of needs and applications. The machine learning paradigms presented can be broadly divided into the following three categories: supervised learning, unsupervised learning, and semi-supervised learning. Supervised learning algorithms focus on learning a mapping function, and they are trained with supervision on labeled data. Supervised learning is further sub-divided into classification and regression algorithms. Unsupervised learning typically does not have access to ground truth, and often the goal is to learn or uncover the hidden pattern in the data. Through semi-supervised learning, one can effectively utilize a large volume of unlabeled data and a limited amount of labeled data to improve machine learning model performances. Deep learning and neural networks are also covered in this book. Deep neural networks have attracted a lot of interest during the last ten years due to the availability of graphics processing units (GPU) computational power, big data, and new software platforms. They have strong capabilities in terms of learning complex mapping functions for different types of data. We organize the book as follows. The book starts by introducing concepts in supervised, unsupervised, and semi-supervised learning. Several algorithms and their inner workings are presented within these three categories. We then continue with a brief introduction to artificial neural network algorithms and their properties. In addition, we cover an array of applications and provide extensive bibliography. The book ends with a summary of the key machine learning concepts.




SUPERVISED LEARNING ALGORITHMS - CLASSIFICATION AND REGRESSION ALGORITHMS


Book Description

The subset of machine learning algorithms known as supervised learning is an essential component that makes a substantial contribution to the resolution of a wide variety of problems that are associated with the study of artificial intelligence (AI). A dataset that has been labeled is given to the algorithm during the supervised learning phase. This dataset contains not only the input data but also the target labels that correlate to those data. Both sets of information are included. The objective of this activity is to construct a model or a mapping that is able to reliably predict the labels for data that has not yet been observed. There are a large number of algorithms that are commonly used for supervised learning, and each of these techniques has a number of benefits as well as some drawbacks. The technique known as linear regression, which is applied in situations involving continuous numerical data, is one method that is frequently used. Creating a linear link between the input features and the variable that you want to change is the method that is used to accomplish this goal. Logistic regression is often utilized when the objective is to categorize individual data points into a number of separate groups or classes. It constructs a model that calculates the probability that a certain data point belongs to a particular category. Decision trees are a type of general-purpose algorithm that can be put to use for a variety of different classification and regression-related projects. They do this by constructing a tree-like structure, where each leaf node represents a projected class or value and each inside node represents a decision that was taken based on a feature. In other words, each node in the structure represents a decision that was made. The performance of prediction tasks can be improved using ensemble methods such as Random Forests and Gradient Boosting. These methods work by combining many decision trees into a single model. They are especially useful when it comes to managing difficult datasets. Support Vector Machines, often known as SVMs, are useful tools for binary classification because they pinpoint the hyperplane that achieves the optimal margin between classes. Because of this, they are able to deliver satisfactory results whenever there is a noticeable divide between the classes.




Machine Learning Models and Algorithms for Big Data Classification


Book Description

This book presents machine learning models and algorithms to address big data classification problems. Existing machine learning techniques like the decision tree (a hierarchical approach), random forest (an ensemble hierarchical approach), and deep learning (a layered approach) are highly suitable for the system that can handle such problems. This book helps readers, especially students and newcomers to the field of big data and machine learning, to gain a quick understanding of the techniques and technologies; therefore, the theory, examples, and programs (Matlab and R) presented in this book have been simplified, hardcoded, repeated, or spaced for improvements. They provide vehicles to test and understand the complicated concepts of various topics in the field. It is expected that the readers adopt these programs to experiment with the examples, and then modify or write their own programs toward advancing their knowledge for solving more complex and challenging problems. The presentation format of this book focuses on simplicity, readability, and dependability so that both undergraduate and graduate students as well as new researchers, developers, and practitioners in this field can easily trust and grasp the concepts, and learn them effectively. It has been written to reduce the mathematical complexity and help the vast majority of readers to understand the topics and get interested in the field. This book consists of four parts, with the total of 14 chapters. The first part mainly focuses on the topics that are needed to help analyze and understand data and big data. The second part covers the topics that can explain the systems required for processing big data. The third part presents the topics required to understand and select machine learning techniques to classify big data. Finally, the fourth part concentrates on the topics that explain the scaling-up machine learning, an important solution for modern big data problems.




Hands-On Machine Learning with R


Book Description

Hands-on Machine Learning with R provides a practical and applied approach to learning and developing intuition into today’s most popular machine learning methods. This book serves as a practitioner’s guide to the machine learning process and is meant to help the reader learn to apply the machine learning stack within R, which includes using various R packages such as glmnet, h2o, ranger, xgboost, keras, and others to effectively model and gain insight from their data. The book favors a hands-on approach, providing an intuitive understanding of machine learning concepts through concrete examples and just a little bit of theory. Throughout this book, the reader will be exposed to the entire machine learning process including feature engineering, resampling, hyperparameter tuning, model evaluation, and interpretation. The reader will be exposed to powerful algorithms such as regularized regression, random forests, gradient boosting machines, deep learning, generalized low rank models, and more! By favoring a hands-on approach and using real word data, the reader will gain an intuitive understanding of the architectures and engines that drive these algorithms and packages, understand when and how to tune the various hyperparameters, and be able to interpret model results. By the end of this book, the reader should have a firm grasp of R’s machine learning stack and be able to implement a systematic approach for producing high quality modeling results. Features: · Offers a practical and applied introduction to the most popular machine learning methods. · Topics covered include feature engineering, resampling, deep learning and more. · Uses a hands-on approach and real world data.




Master Machine Learning Algorithms


Book Description

You must understand the algorithms to get good (and be recognized as being good) at machine learning. In this Ebook, finally cut through the math and learn exactly how machine learning algorithms work, then implement them from scratch, step-by-step.




Interpretable Machine Learning


Book Description

This book is about making machine learning models and their decisions interpretable. After exploring the concepts of interpretability, you will learn about simple, interpretable models such as decision trees, decision rules and linear regression. Later chapters focus on general model-agnostic methods for interpreting black box models like feature importance and accumulated local effects and explaining individual predictions with Shapley values and LIME. All interpretation methods are explained in depth and discussed critically. How do they work under the hood? What are their strengths and weaknesses? How can their outputs be interpreted? This book will enable you to select and correctly apply the interpretation method that is most suitable for your machine learning project.