In this liveProject, you’ll build a machine learning system based on the Capital Asset Pricing Model (CAPM) that can determine if certain stocks are over or undervalued, and the risk level of these stocks relative to the market index. CAPM is a powerful tool in finance due to its intuitive and easy-to-apply nature, and in this project you’ll use it to estimate coefficients, determine valuation accuracy, and finally find which stock promises the best risk-return relationship.
This project is designed for learning purposes and is not a complete, production-ready application or solution.
This liveProject is for data analysts with an interest in financial services. Some knowledge of the finance industry will be useful. To begin this liveProject you will need to be familiar with:
- Basics of Python
- Basics of Jupyter Notebook
- Basics of finance
- Usage of APIs for data extraction
- Python for data cleaning and exploration
- Running linear regression in Python
you will learn
In this liveProject, you’ll learn to use one of the most reliable machine learning tools for finance and improve your understanding of financial data science.
- Risk management
- Financial risk estimation
- Financial modeling with multivariate case