Generating Asset Pricing Model via Symbolic Modeling鈥攁 Machine Learning-based Approach
Chinese Academy of SciencesResearchers develop Symbolic Modeling鈥攁n AI-powered technique creating unified mathematical models for financial asset pricing. Compared to neural network, the generated mathematical expression by symbolic modeling is easier to comprehend and analyze. Testing across hundreds of company鈥檚 datasets shows lower prediction errors and reduced unexplainable return compared to classic asset pricing models like CAPM or Fama-French 3-Factor model.