Machine learning for financial forecasting, planning and analysis: recent developments and pitfalls

This article is an introduction to machine learning for financial forecasting, planning and analysis (FP&A). Machine learning appears well suited to support FP&A with the highly automated extraction of information from large amounts of data. However, because most traditional machine learning techniques focus on forecasting (prediction), we discuss the particular care that must be taken to avoid the pitfalls of using them for planning and resource allocation (causal inference). While the naive application of machine learning usually fails in this context, the recently developed double machine learning framework can address causal questions of interest. We review the current literature on machine learning in FP&A and illustrate in a simulation study how machine learning can be used for both forecasting and planning. We also investigate how forecasting and planning improve as the number of data points increases.

Ensemble Stock Market Prediction using SVM,LSTM, and Linear Regression

<div>Abstract: Stock forecasting is challenging because of stock volatility and dependability on external factors, such as economic, social, and political factors. This motivates investors to seek tools to identify stock trends to reap profits.</div><div><div>In this research, we compared several heterogeneous ensembles for financial forecasting, including averaging, weighted, stacking, and blending ensembles. In addition, we used a random forest regressor as the baseline.<br></div><div>Regression was used to predict the next day’s closing stock price. We used classification to label closing stock value as HIGH or LOW by comparing with the opening stock value of a particular company. We used Long Short Term Memory (LSTM) models, Linear Regression, and Support Vector Machines (SVM) as individual models. Further, we analyzed 10 years of historical data of the most active 20 companies of the NASDAQ stock exchange for implementing ensemble models.<br></div><div>In conclusion, experimental results depict blending ensembles perform the best out of compared ensembles in financial forecasting. Further, they reveal SVM is under-performing, LSTM outputs are satisfactory, while linear regression produced promising results.<br></div></div><div>Data: Data for this research was gathered from online available sources from the NASDAQ American stock exchange.</div><div>We gathered data for most active 20 companies and 10 years of historical data from 21st September 2019 backwards. We used 40044 data points in total.</div>

Financial Forecasting in Financial Management Strategy: Goals, Objectives, Methods

The activity of the enterprise is inseparable from the adoption of managerial decisions. Forecasting is one of the tools that helps management to assess the future performance. Financial forecasting plays a key role in the development of a company's strategy and is an integral part of financial management. This article discusses the tasks and methods of financial forecasting, as well as the factors on the basis of which the choice of forecasting methodology is made for a successful assessment of the financial position of an enterprise and making the right management decisions.

THE ROLE OF FINANCE IN OUR LIVES

The article presents a comprehensive economics and financial analysis that plays a critical role in all areas of life. It plays an important role in individual resilience. This study includes financial and economical planning factors, revenue analysis, investment risk and financial forecasting. It includes budgeting, spending and saving. Healthy finances simply emphasize many of the goals of my life because healthy investments keep my daily stress level low, allow me to focus on doing other things, and open up opportunities to move forward. In other words, having the right level of financial success is one of the factors I measure in my life. How your financial skills help you understand how much you earn, what your monthly expenses are, and how it helps you budget for that income. The concept is that the sensitivity of investment to investment should be measured taking into account the amount of solid assets that can be used as collateral. High-level firms in the capital had high levels of investment sensitivity during the pre-crisis crisis, while post-crisis firms were less sensitive to cash flow when investing. Finance involves managing finances. KEYWORDS: finance, importance of finance, learning finance, finance and accounting, life with finance, recognizing finance, roles of finance