We decompose the textual data in a daily Norwegian business newspaper into news topics and investigate their predictive … and causal role for asset prices. Our three main findings are: (1) a one unit innovation in the news topics predict … points after 15 business days, with little sign of reversal; (2) simple zero-cost news-based investment strategies yield …

Machine learning is an increasingly important and controversial topic in quantitative finance. A lively debate persists … as to whether machine learning techniques can be practical investment tools. Although machine learning algorithms can … a simple example of how investors can use machine learning techniques to forecast the cross-section of stock returns …