Profiting from the US election through artificial intelligence

Swissquote Bank AG, the leading Swiss online bank, has teamed up with École polytechnique fédérale de Lausanne (EPFL) to develop a new investment opportunity specifically tailored to the US presidential election and its impact on financial markets. Investors can invest in real time in selected stocks or currencies whose prices are likely to change significantly - depending on which candidate wins.

The US election results on 8 November are to be predicted with the help of artificial intelligence. (Image: zVg)

For Themes Trading, the investment opportunities by theme, Swissquote has put together two equity portfolios, each of which is assumed to benefit from either a Hillary Clinton or Donald Trump victory.

For the first time, a fintech tool will be used to predict the outcome of the election in real time. To do this, it evaluates all the opinions on Hillary Clinton and Donald Trump available on the internet and uses them to continuously determine which of the two candidates is in the lead. This forecast is intended to make it easier for investors to make investment decisions.

AI

The tool was developed in collaboration with the École polytechnique fédérale de Lausanne (EPFL). It uses artificial intelligence techniques such as graph theory, machine learning and computational linguistics. Which candidate is currently ahead can be tracked continuously in real time on a special Swissquote website: swissquote.com/us-election

Themes Trading

For Themes Trading, the investment opportunities by theme, Swissquote has put together two equity portfolios, each of which is assumed to benefit from either a Hillary Clinton or Donald Trump victory. Democrat Clinton's portfolio combines stocks from the renewable energy, healthcare and defence sectors. For Republican Trump's portfolio, Swissquote has selected stocks from the international trade sector, as well as those that will be impacted by expected changes in immigration and energy policy.

Currencies and their exchange rates react most quickly to the US election. Often, a single statement by the candidates is enough to move the rates. Swissquote has also put together two portfolios for this purpose, Clinton and Trump, with different currencies that are increasingly sensitive to the US election.

The means of decision

These include the Mexican peso, the Canadian dollar, the Chinese yuan and the Japanese yen.

"To differentiate themselves, candidates are taking extreme positions. This has increased the likelihood that the election outcome will have a real impact on financial markets," said Peter Rosenstreich, Head of Market Strategy at Swissquote. "In the coming weeks, we expect markets to become increasingly sensitive to the candidates' statements, which will have an immediate impact on international portfolios."

"The Internet-based real-time opinion poll has the potential to become an important aid to investment decisions, whether in predicting election results or other investments that are directly affected by changes in public opinion," said Swissquote CEO Marc Bürki. "Making these numbers publicly available highlights Swissquote's commitment to combining traditional investment advice with the latest financial technology."

For more information on the new Fin-Tech application for the upcoming US elections with swissquote, please visit

swissquote.com/us-election

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