What Is the Efficient Market Hypothesis (EMH)?
The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available information and consistent alpha generation is impossible.<\/p>\n\n\n\n
According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.<\/p>\n\n\n\n
Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing, and the only way an investor can obtain higher returns is by purchasing riskier investments.”<\/p>\n\n\n\n
Ref: https:\/\/www.investopedia.com\/terms\/e\/efficientmarkethypothesis.asp<\/p>\n\n\n\n
“Opponents of EMH believe that it is possible to beat the market and that stocks can deviate from their fair market values.” [2]<\/p>\n\n\n\n
We predict stocks using
Usually: Proper selection of
Stocks and Time Intervals
Statistics
Machine Learning<\/p>\n\n\n\n
This paper goes beyond and Uses
Spatio-Temporal Relationship
among stocks
Graph theory<\/p>\n","protected":false},"excerpt":{"rendered":"
What Is the Efficient Market Hypothesis (EMH)?The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all available information and consistent alpha generation is impossible. According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to … <\/p>\n