Discriminant Analysis of Financial Sectors
DOI:
https://doi.org/10.54097/hbem.v3i.4753Keywords:
Machine Learning; Financial Data; Performance Analysis.Abstract
The Machine learning has been wide used and trained to do jobs to analyze companies’ performance based on the financial data, and the portfolio managers have widely accepted the use the machine learning as a tool to assist company analysis and investment decision making. As a result of the test performed above, the discriminant test, investors can train the model to distinguish performance of the companies, whether it will perform at the top 25% of the sector or bottom 25% of the sector, from the financial/banking sector based on the financial ratios of net income/revenue and total debt/total liabilities or EBIT/revenue and total debt/total liabilities.
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