Eric Ghysels|Artificial Intelligence Alter Egos

On November 7, 2018, the Center for International Finance and Economic Research (CIFER) of the National Institute of Financial Research at Tsinghua University successfully held the 4th "CIFER Macroeconomics and International Economics Workshop". Professor Eric Ghysels from the Kenan - Flagler Business School at the University of North Carolina at Chapel Hill exchanged in - depth views with the experts and scholars present on his latest research results in the field of artificial intelligence and fintech.


Professor Eric Ghysels obtained his Ph.D. in Managerial Economics and Decision Sciences from Northwestern University in 1984. His research areas cover multiple fields such as econometrics, time series, and asset pricing (for a detailed resume, please refer to the previous post). In this Workshop, Professor Eric Ghysels first sorted out the application status of artificial intelligence in the stock market. Then, he specifically compared the advantages and disadvantages of three different types of robo - advisor investment strategies and delved into issues such as the applicable objects of robo - advisors, sources of profits, and performance during the financial crisis. The research found that: on average, investors can benefit from the optimal asset allocation strategy of robo - advisors; investors with specific characteristics (such as lower education level, strong risk aversion, and lower income) can obtain higher returns through robo - advisors than other investors; the optimal robo - advisor strategy performed averagely during the recent financial crisis; investors with lower education level, weak risk aversion, and lower income showed a higher disposition effect (referring to the tendency of investors to sell profitable stocks and hold losing stocks when disposing of stocks); the spread obtained by the robo - advisor strategy compared with individual subjective operations is related to the disposition effect and market conditions.