Robot analysts are better than humans at picking stocks, a new study found - Business Insider

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Robo-analysts seem to make better stock recommendations than human research analysts, according to a University of Indiana study.It found that portfolios based on the buy recommendations of robo-analysts outperformed those of human analysts, suggesting robo-analysts' buy recommendations are more profitable.

What's more, they found that robo-analysts collectively produce a more balanced distribution of buy, hold, and sell recommendations than do human analysts, and are less likely to rely on companies' periodic earnings reports when carrying out their analysis. For one thing, robo-analysts don't appear to outperform human analysts when it comes to the other side of the equation: sell recommendations. The Indiana study found "no evidence" to indicate that robo-analysts' sell recommendations are incrementally more profitable than those of human analysts.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market picks, investing strategy from fund manager Chris Mack - Business InsiderChris Mack's fund has crushed its competition for 15 years. He shares 3 little-known stocks driving his market-beating record, and tells us why he just dumped Amazon.
Source: BusinessInsider - 🏆 729. / 51 Read more »

EQT Ventures: New partner on finding high growth companies in tech - Business InsiderA VC who looks for futuristic startups has just been made partner at Europe's leading funds. Here's how he finds 'science fiction' tech companies
Source: BusinessInsider - 🏆 729. / 51 Read more »

Business InsiderA car dealer is selling Al Capone's bulletproof 1928 Cadillac sedan for $1 million — see inside I'll take 10. Tupac’s BMW is for sale for $1.75mm with bullet holes included
Source: BusinessInsider - 🏆 729. / 51 Read more »

DataRobot's new COO led AppDynamics when it had its 'almost IPO' - Business InsiderDataRobot's new chief operating officer was COO at AppDynamics when it had an 'almost IPO.' The IPO was cancelled after Cisco bought the company.
Source: BusinessInsider - 🏆 729. / 51 Read more »