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Machine Learning for Finance

You're reading from   Machine Learning for Finance Principles and practice for financial insiders

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Product type Paperback
Published in May 2019
Publisher Packt
ISBN-13 9781789136364
Length 456 pages
Edition 1st Edition
Languages
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Authors (2):
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Jannes Klaas Jannes Klaas
Author Profile Icon Jannes Klaas
Jannes Klaas
James Le James Le
Author Profile Icon James Le
James Le
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Table of Contents (15) Chapters Close

Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
1. Neural Networks and Gradient-Based Optimization 2. Applying Machine Learning to Structured Data FREE CHAPTER 3. Utilizing Computer Vision 4. Understanding Time Series 5. Parsing Textual Data with Natural Language Processing 6. Using Generative Models 7. Reinforcement Learning for Financial Markets 8. Privacy, Debugging, and Launching Your Products 9. Fighting Bias 10. Bayesian Inference and Probabilistic Programming Index

Document similarity with word embeddings


The practical use case of word vectors is to compare the semantic similarity between documents. If you are a retail bank, insurance company, or any other company that sells to end users, you will have to deal with support requests. You'll often find that many customers have similar requests, so by finding out how similar texts are semantically, previous answers to similar requests can be reused, and your organization's overall service can be improved.

spaCy has a built-in function to measure the similarity between two sentences. It also comes with pretrained vectors from the Word2Vec model, which is similar to GloVe. This method works by averaging the embedding vectors of all the words in a text and then measuring the cosine of the angle between the average vectors. Two vectors pointing in roughly the same direction will have a high similarity score, whereas vectors pointing in different directions will have a low similarity score. This is visualized...

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