A Literature Review on Machine Learning Applications in Financial Forecasting

Abstract

Analyzing the past trend and predicting the future movement is an important aspect for every business. Knowing the future value makes an organization more efficient in planning specially if it is related to financial factors. This can be achieved by analyzing the historical data of the company. This is called time series analysis. The increased application of computer and information technologies, has made this more effective and accurate which is called machine learning. Methods of Machine Learning (ML) have been proposed as alternative approach to statistical metthods by many researchers in their academic literature. This paper presents a review of the works where the authors have used machine learning techniques in financial forecasting.