Engineering Alpha

Engineering Alpha

A-Z Machine Learning: Linear Regression in Time Series Analysis

A Deep Understanding and Visualization of Linear Regression

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jan 08, 2024
∙ Paid

Linear regression is sometimes looked down upon due to its simplicity and its linear-dependent outputs. However, a lot of complex forecasting tasks can be solved using linear regression. I was once told by a very successful hedge fund manager that one of their sophisticated trading models relied on a simple linear regression model.

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