What is Predictive Analytics?
Predictive Analytics predicts what is most likely to happen in the future. Predictive analytics takes historical data and feeds it into a Machine Learning model. The model learns from some parts of the historical data. The model is then tested to predict what will happen next on other part of the historical data. Predictive analytics may statistically predict a price decline in a financial risk asset based on patterns in a set of alternative data.
Read more about the difference between other types of analytics, such as Descriptive Analytics, Diagnostic Analytics, and Prescriptive Analytics.