Case Study: a leading global investment and trading company predicts market regimes with SparkCognition's Darwin

Predicting Financial Market Regimes With AI

A leading global investment and trading company sought to overcome the limitations of existing models that could not predict financial market regimes across different asset classes over a broad time window. To gain a competitive advantage through better predictions on volatility and price changes, the company initiated an internal competition, during which one team utilized SparkCognition's Darwin automated machine learning product.

SparkCognition's Darwin automated the data science process, including data cleaning, feature generation, and building an optimized deep neural network through neuroevolution. In under an hour, Darwin created an investment-grade model that successfully predicted next-day market states across multiple assets, which proved to have the best predictive power in the competition and won. This solution from SparkCognition will enable the company to make superior, data-driven investment decisions based on expected market sentiment.