Application of Machine Learning Algorithm in Financial Market Risk Prediction

Abstract

The application of machine learning algorithm in financial market risk prediction is a technology that uses data sets to predict future results. The main goal of this method is to find patterns and trends in the data set that can be used to predict future events. In the financial market, every transaction has the risk of loss. This risk can be quantified by various parameters, such as volatility, correlation, etc. The most important parameter is price change or volatility, which is called volatility or risk premium. Market participants have been looking for ways to predict and profit from these risks. Machine learning algorithm has been used to predict the future price in this field with high accuracy and efficiency. It helps traders find the best trading strategy and help them get the maximum profit from their investment without any loss. Machine learning algorithms are used in the financial industry because they have proven to be accurate and effective tools for predicting past events and future events. This type of analysis is now very popular because it enables us to make better decisions based on historical and statistical data.