Book Image

Machine Learning for Finance

By : Jannes Klaas
Book Image

Machine Learning for Finance

By: Jannes Klaas

Overview of this book

Machine Learning for Finance explores new advances in machine learning and shows how they can be applied across the financial sector, including insurance, transactions, and lending. This book explains the concepts and algorithms behind the main machine learning techniques and provides example Python code for implementing the models yourself. The book is based on Jannes Klaas’ experience of running machine learning training courses for financial professionals. Rather than providing ready-made financial algorithms, the book focuses on advanced machine learning concepts and ideas that can be applied in a wide variety of ways. The book systematically explains how machine learning works on structured data, text, images, and time series. You'll cover generative adversarial learning, reinforcement learning, debugging, and launching machine learning products. Later chapters will discuss how to fight bias in machine learning. The book ends with an exploration of Bayesian inference and probabilistic programming.
Table of Contents (15 chapters)
Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
Index

Chapter 6. Using Generative Models

Generative models generate new data. In a way, they are the exact opposite of the models that we've dealt with in prior chapters. While an image classifier takes in a high-dimensional input, the image, and outputs a low-dimensional output such as the content of the image, a generative model goes about things in exactly the opposite way around. It might, for example, draw images from the description of what's in them.

Generative models are still in the experimental phase of their development, and are currently used mostly in image applications. However, they are an important model as shown by the fact that there have already been several applications that have used generative models that have caused an uproar within the industry.

In 2017, so-called DeepFakes began to appear on the internet. Generative Adversarial Networks (GANs), which we will cover later in this chapter, were used to generate pornographic videos featuring famous celebrities. The year before...