Top 5 Essential Machine Learning Libraries for Financial Engineering

Python is a versatile language for financial engineering; you will stumble upon countless libraries available that can be used for this purpose. In my illustration, I will discuss what I find as the top five essential machine learning libraries in Python for financial engineering. In the past, financial engineering has been heavily reliant on traditional statistical methods. However, machine learning is providing new ways to model and predict financial data. Machine learning is important for financial engineering because it can handle nonlinear relationships between inputs and outputs, detect patterns that are highly complex for humans to notice (as part of their evaluation process), and learn from streaming data in real time.