Application of Deep Learning Method to Capital Assets Pricing

Abstract

The key problem of financial assets allocation is the price of assets. Assets pricing is the core content of Modern Finance, and revealing the law of assets pricing is always a hot spot of finance research. In recent years, deep learning technology has been applied in the research process of assets pricing and achieved good effect. This paper introduced the theory and characteristics of deep learning, started from extracting and utilizing nonlinear information, effectively processing time series data, and intellectual prediction model, and explored the application of deep learning method in the capital assets pricing. Meanwhile, this paper explores the applicability and limitations of deep learning methods and discusses possible future research trends in learning-based asset pricing.