Risk Management in the Australian Stock Market using Artificial Neural Networks

Stock market prediction with machine learning techniques is a popular eld of research due to the potential prot making oppor- tunities. A less frequently analysed area in nancial data mining is the application of Articial Neural Networks (ANNs) in the domain of risk management. This paper aims to contribute to the literature by exam- ining advances in stock market prediction and use them to create hedg- ing strategies to protect stock portfolios against downturns in the stock market. The simulation results indicate that Articial Neural Networks provide a exible and eective decision support tool for risk managers in the Australian stock market.

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