Correcting the Factor Mirage: Research Protocol for Causal Factor Investing | Marcos López de Prado
In this virtual presentation from the Seventh Annual Volatility and Risk Institute Conference, Marcos López de Prado presents his latest research, "Correcting the Factor Mirage: A Research Protocol for Causal Factor Investing." Co-authored with Vincent Zoonekynd.
About the Conference:
The Seventh Annual Volatility and Risk Institute Conference: "Artificial Intelligence and Risk Management" was held on Friday, April 24, 2026 at NYU Stern.
Artificial intelligence (AI) creates vast opportunities for reshaping business and the economy, enhancing productivity, reducing costs, and streamlining operations. Nowhere is this transformation more evident than in finance, where AI tools can analyze vast quantities of information to improve efficiency and reduce human error. However, AI also carries risks and can be prone to error. Developing sound practices to ensure its responsible use is essential.
This conference examined the opportunities and challenges of applying AI to identify and manage risks in finance. Topics included enhancing the monitoring of firms and markets, enabling deeper research into systemic risks, and addressing data gaps exposed by AI analysis.