AI-driven investing is a type of investment strategy that relies on artificial intelligence capabilities to understand financial market trends. AI technologies such as machine learning, and natural language processing, make it possible to analyse massive amounts of financial and economic data, including market sentiments and news reports to gain insights into future market performance. AI-investing has the potential to completely transform how we invest and manage our portfolios. It can assist investors analyse financial market data in real-time with more accuracy and efficiency. Specialised AI models can also help to predict future trends, and alert investors to potential risks to an asset or recommend emerging investment opportunities.

In this article, we’ll highlight how AI investing works, and how you can leverage its capabilities to reinforce your investment approach. 

How Does AI-Driven Investing Work?

Artificial Intelligence investing is powered by various technologies including predictive analytics, natural language processing, and machine learning. Leveraging these capabilities, AI systems are trained to identify market patterns and correlations that can forecast future financial market trends based on historical financial market data, including macroeconomic indicators, stock market activity, and asset fundamentals. 

AI Stock Prediction 

With artificial intelligence, investors can get forecasts on the performance of a stock or a sector, making stock picking, buy and sell decisions, and new investment opportunities easier to determine.  Here’s how the process works:

• It starts by gathering and sorting through historical data about company earnings, stock prices, market trends, and more.

• Next, the AI algorithm identifies the most important variables which are likely to impact stock prices. Using machine learning, the AI algorithm then analyses these data points and identifies patterns in these data.

• Using the identified trends in historical data, the AI makes learned predictions about how an asset or sector will likely perform in the future.

• As market conditions and new data is made available to the AI, it also makes adjustments to its predictions.

AI Trading

AI trading is active portfolio management powered by Artificial intelligence. Artificial intelligence trading goes beyond forecasting market performance for assets, it involves the automated purchasing or selling of a security, based on a tested algorithm. AI trading also relies on data analysis, predictive analysis, and machine learning to identify buy and sell signals based on pre-set rules and strategies, and automatically execute financial market trades.

AI-Investing Vs Human Investing

Here are some key differences between AI-powered investing and traditional human-driven investing:

Looking for the Best AI Investing Software? Try Anahit

As AI investing gains ground, many AI investing platforms are coming on the market. Anahit, however, is one of the most unique investing tools currently available as it uses a proprietary 5-dimensional algorithm to analyse markets and make AI stock predictions.

AI Investing With Anahit

Anahit’s AI algorithm is based on five market dimensions that look into a stock’s historical performance, analyse the company’s financial health, understand current macroeconomic indicators, and determine underlying market sentiment. Here are the 5 indicators that power the Anahit AI algorithm:

  Macro

Analyses global events and trends and how they can have an impact on the world’s capital market. The macro analysis capabilities of Anahit allow investors to take account of factors like geopolitical factors, supply and demand conditions, fiscal and monetary policies, and more.

Fundamental Analysis

Using metrics like price-to-earnings ratio, projected earnings growth, and dividend yields, Anahit analyses a company’s financial statements, credit ratings, quality of management, as well as the health of the sector.

Technical Analysis

Anahit’s artificial intelligence algorithm analyses a stock’s price performance history, price momentum, and market volume patterns to predict an asset price movement over time.  

Social Sentiment Analysis

Using Natural Language Processing, Anahit’s algorithm can analyse investment conversations across social channels, and identify strong social sentiments of the public towards a company.

News Analysis

Anahit analyses and processes news headlines, ongoing analyses, and financial happenings that can impact market conditions and asset performance.

The Anahit platform also offers investors unique dashboards that display vital data on various asset classes, industries, and market activities providing you with the perfect tool to conduct in-depth market research on investment opportunities, evaluate the performance of the history of an asset and view predictions on future performance.

With the Anahit AI investing platform, you can make more accurate investment decisions, respond quickly to market changes, and manage your portfolio without the expensive fees associated with traditional investing.

Gain access to unique investment insights today by signing up on Anahit today! Visit Anahit.ai to get started now with a 6-month free trial.