Stock market prediction with machine learning techniques is a popular field of research due to the potential profit making opportunities. A less frequently analysed area in financial data mining is the application of Artificial Neural Networks (ANNs) in the domain of risk management. This paper aims to contribute to the literature by examining advances in stock market prediction and use them to create hedging strategies to protect stock portfolios against downturns in the stock market. The simulation results indicate that Artificial Neural Networks provide a flexible and effective decision support tool for risk managers in the Australian stock market.
|Number of pages
|Australian Journal of Intelligent Information Processing Systems
|Published - 2012