Modelling A.I. in Economics

Can stock prices be predicted? (NSC Stock Forecast)

Abstract

We evaluate Norfolk Southern prediction models with RC Phase Shift Oscillator and ANOVA1,2,3,4 and conclude that the NSC stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold NSC stock.


Keywords: NSC, Norfolk Southern, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Which neural network is best for prediction?
  2. Stock Rating
  3. Can stock prices be predicted?

NSC Target Price Prediction Modeling Methodology

We consider Norfolk Southern Stock Decision Process with ANOVA where A is the set of discrete actions of NSC stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4


F(ANOVA)5,6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(RC Phase Shift Oscillator) X S(n):→ (n+6 month) e x rx

n:Time series to forecast

p:Price signals of NSC stock

j:Nash equilibria

k:Dominated move

a:Best response for target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

NSC Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: NSC Norfolk Southern
Time series to forecast n: 31 Aug 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold NSC stock.

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Yellow to Green): *Technical Analysis%


Conclusions

Norfolk Southern assigned short-term Baa2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models RC Phase Shift Oscillator with ANOVA1,2,3,4 and conclude that the NSC stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold NSC stock.

Financial State Forecast for NSC Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Baa2Ba3
Operational Risk 6473
Market Risk4762
Technical Analysis8836
Fundamental Analysis8786
Risk Unsystematic8451

Prediction Confidence Score

Trust metric by Neural Network: 81 out of 100 with 807 signals.

References

  1. Bell RM, Koren Y. 2007. Lessons from the Netflix prize challenge. ACM SIGKDD Explor. Newsl. 9:75–79
  2. Bastani H, Bayati M. 2015. Online decision-making with high-dimensional covariates. Work. Pap., Univ. Penn./ Stanford Grad. School Bus., Philadelphia/Stanford, CA
  3. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
  4. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
  5. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier
  6. D. S. Bernstein, S. Zilberstein, and N. Immerman. The complexity of decentralized control of Markov Decision Processes. In UAI '00: Proceedings of the 16th Conference in Uncertainty in Artificial Intelligence, Stanford University, Stanford, California, USA, June 30 - July 3, 2000, pages 32–37, 2000.
  7. M. L. Littman. Markov games as a framework for multi-agent reinforcement learning. In Ma- chine Learning, Proceedings of the Eleventh International Conference, Rutgers University, New Brunswick, NJ, USA, July 10-13, 1994, pages 157–163, 1994
Frequently Asked QuestionsQ: What is the prediction methodology for NSC stock?
A: NSC stock prediction methodology: We evaluate the prediction models RC Phase Shift Oscillator and ANOVA
Q: Is NSC stock a buy or sell?
A: The dominant strategy among neural network is to Hold NSC Stock.
Q: Is Norfolk Southern stock a good investment?
A: The consensus rating for Norfolk Southern is Hold and assigned short-term Baa2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of NSC stock?
A: The consensus rating for NSC is Hold.
Q: What is the prediction period for NSC stock?
A: The prediction period for NSC is (n+6 month)

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