Efficient Market

The efficient market hypothesis (EMH) posits that asset prices fully reflect all available information, leaving no opportunity for abnormal profits. Current research focuses on testing EMH across diverse markets (e.g., cryptocurrency, stock, betting) using advanced machine learning techniques, including deep learning models (like ResNets and Deep Q-Learning) and semi-parametric processes, to analyze high-frequency data and identify potential market inefficiencies. These studies often incorporate sentiment analysis from social media or examine the impact of various input features on predictive accuracy. Findings challenge the strict EMH, revealing market nuances and informing the development of more sophisticated trading strategies and risk management models.