Hello everyone, machine learning is completely new to me and I was wondering if anyone could help me.
If you consider the following graph, we have the market risk premium in blue, and the stock market index in green. Risk premium is generally used to forecast future stock performance.
My idea was, if it is feasible, to use a machine learning tools that will extract all the explanatory information of the risk premium and use it to make the best forecast for the next 3 months (either positive or negative).
Once I know how to do the core code I will be able to play around a bit.
Can anyone describe me how he would handle this problem?
Many thanks in advance,