Modelling A.I. in Economics

Should You Buy, Sell, or Hold? (KEYS Stock Forecast)

Abstract

We evaluate Keysight prediction models with Modified (Smoothed) Moving Average and ElasticNet Regression1,2,3,4 and conclude that the KEYS stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KEYS stock.


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

Key Points

  1. What is the best way to predict stock prices?
  2. How do you know when a stock will go up or down?
  3. How accurate is machine learning in stock market?

KEYS Target Price Prediction Modeling Methodology

We consider Keysight Stock Decision Process with ElasticNet Regression where A is the set of discrete actions of KEYS 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(ElasticNet Regression)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(Modified (Smoothed) Moving Average) X S(n):→ (n+16 weeks) i = 1 n s i

n:Time series to forecast

p:Price signals of KEYS 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?

KEYS Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: KEYS Keysight
Time series to forecast n: 31 Aug 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KEYS 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

Keysight assigned short-term B1 & long-term Baa2 forecasted stock rating. We evaluate the prediction models Modified (Smoothed) Moving Average with ElasticNet Regression1,2,3,4 and conclude that the KEYS stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KEYS stock.

Financial State Forecast for KEYS Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1Baa2
Operational Risk 4288
Market Risk5638
Technical Analysis7787
Fundamental Analysis6786
Risk Unsystematic6272

Prediction Confidence Score

Trust metric by Neural Network: 92 out of 100 with 825 signals.

References

  1. Mikolov T, Chen K, Corrado GS, Dean J. 2013a. Efficient estimation of word representations in vector space. arXiv:1301.3781 [cs.CL]
  2. V. Borkar. A sensitivity formula for the risk-sensitive cost and the actor-critic algorithm. Systems & Control Letters, 44:339–346, 2001
  3. S. Proper and K. Tumer. Modeling difference rewards for multiagent learning (extended abstract). In Proceedings of the Eleventh International Joint Conference on Autonomous Agents and Multiagent Systems, Valencia, Spain, June 2012
  4. Hastie T, Tibshirani R, Wainwright M. 2015. Statistical Learning with Sparsity: The Lasso and Generalizations. New York: CRC Press
  5. J. Spall. Multivariate stochastic approximation using a simultaneous perturbation gradient approximation. IEEE Transactions on Automatic Control, 37(3):332–341, 1992.
  6. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  7. Candès E, Tao T. 2007. The Dantzig selector: statistical estimation when p is much larger than n. Ann. Stat. 35:2313–51
Frequently Asked QuestionsQ: What is the prediction methodology for KEYS stock?
A: KEYS stock prediction methodology: We evaluate the prediction models Modified (Smoothed) Moving Average and ElasticNet Regression
Q: Is KEYS stock a buy or sell?
A: The dominant strategy among neural network is to Hold KEYS Stock.
Q: Is Keysight stock a good investment?
A: The consensus rating for Keysight is Hold and assigned short-term B1 & long-term Baa2 forecasted stock rating.
Q: What is the consensus rating of KEYS stock?
A: The consensus rating for KEYS is Hold.
Q: What is the prediction period for KEYS stock?
A: The prediction period for KEYS is (n+16 weeks)

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