Machine Learning in Finance

  1. Risk Management and Portfolio Optimization
    1. Risk Measurement and Modeling
      1. Market Risk
        1. Value at Risk
          1. Historical Simulation
            1. Parametric Methods
              1. Monte Carlo Simulation
              2. Expected Shortfall
                1. Stress Testing
                  1. Scenario Analysis
                  2. Credit Risk
                    1. Probability of Default
                      1. Loss Given Default
                        1. Exposure at Default
                          1. Credit Scoring Models
                            1. Logistic Regression
                              1. Decision Trees
                                1. Ensemble Methods
                              2. Operational Risk
                                1. Loss Event Modeling
                                  1. Scenario-Based Approaches
                                    1. Key Risk Indicators
                                    2. Liquidity Risk
                                      1. Funding Liquidity
                                        1. Market Liquidity
                                          1. Liquidity-Adjusted VaR
                                        2. Portfolio Construction and Optimization
                                          1. Modern Portfolio Theory
                                            1. Mean-Variance Optimization
                                              1. Efficient Frontier
                                                1. Capital Allocation Line
                                                2. Risk Parity Approaches
                                                  1. Equal Risk Contribution
                                                    1. Hierarchical Risk Parity
                                                      1. Risk Budgeting
                                                      2. Factor-Based Investing
                                                        1. Factor Identification
                                                          1. Factor Timing
                                                            1. Multi-Factor Models
                                                            2. Alternative Optimization Methods
                                                              1. Black-Litterman Model
                                                                1. Robust Optimization
                                                                  1. Machine Learning-Based Optimization
                                                                2. Dynamic Risk Management
                                                                  1. Real-Time Risk Monitoring
                                                                    1. Position Limits
                                                                      1. Stop-Loss Mechanisms
                                                                        1. Dynamic Hedging
                                                                        2. Portfolio Rebalancing
                                                                          1. Threshold-Based Rebalancing
                                                                            1. Time-Based Rebalancing
                                                                              1. Volatility-Based Rebalancing
                                                                              2. Stress Testing and Scenario Analysis
                                                                                1. Historical Scenarios
                                                                                  1. Hypothetical Scenarios
                                                                                    1. Monte Carlo Stress Testing

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                                                                                3. Algorithmic Trading and Strategy Development

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                                                                                5. Fraud Detection and Compliance