Lakhasly

Handling Extreme Market Events: 1.Sentiment Analysis: The current market mood assessment is being carried out as the model is gathering data from a variety of sources, for instance, news stories, social media, and financial reports.Through the reduction of exposure to potential losses in any market segment, diversification thus serves as the basis for the lessening of the overall risk.Diversification: The AI model is a combination of the assets, industries, and regions that are covered which results in a very balanced portfolio.2.3.

Handling Extreme Market Events:

1. Diversification: The AI model is a combination of the assets, industries, and regions that are covered which results in a very balanced portfolio. Through the reduction of exposure to potential losses in any market segment, diversification thus serves as the basis for the lessening of the overall risk.


2. Sentiment Analysis: The current market mood assessment is being carried out as the model is gathering data from a variety of sources, for instance, news stories, social media, and financial reports. Hence, in order to know what the market will be like and adjust its positions accordingly, it is possible to study the changes in sentiment (Jackson, 2016).


3. Dynamic Risk Management: Our AI model modifies the portfolio allocations in accordance with the market conditions and the risk factors as the situation changes. In the instance of extreme events, it may be the case of trimming down the high-risk assets or of increasing the hedging strategies to limit the potential losses.