Why do some investments outperform others? For decades, models like CAPM and Fama-French ruled asset pricing—but now, we’re at a tipping point. In this deep dive, we explore the revolutionary shift underway in finance, as big data and machine learning challenge traditional econometrics.

Join us as we unpack the evolution from static factor models to dynamic, high-dimensional approaches that use everything from social media sentiment to supply chain links. Learn how machine learning reshapes portfolio construction, tackles model uncertainty, and reveals new insights into investor behavior and market prediction.

💡 Featuring concepts like the stochastic discount factor, predictive accuracy vs. parameter estimation, and the surprising power of complexity in finance, this episode is essential listening for economists, data scientists, and market practitioners alike.

🎧 From theory to algorithms—this is how modern finance is being rebuilt.

Find the full research paper here: https://community.quantopian.com/c/community-forums/from-econometrics-to-machine-learning-transforming-empirical-asset-pricing

For more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.

Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

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