Modelling A.I. in Economics

BIG TECHNOLOGIES PLC assigned short-term B2 & long-term B3 forecasted stock rating.

Neural networks (NNs), as artificial intelligence (AI) methods, have become very important in making stock market predictions. Much research on the applications of NNs for solving business problems have proven their advantages over statistical and other methods that do not include AI, although there is no optimal methodology for a certain problem. We evaluate BIG TECHNOLOGIES PLC prediction models with Modular Neural Network (Financial Sentiment Analysis) and Logistic Regression1,2,3,4 and conclude that the LON:BIG stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:BIG stock.


Keywords: LON:BIG, BIG TECHNOLOGIES PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Is it better to buy and sell or hold?
  2. What is statistical models in machine learning?
  3. Probability Distribution

LON:BIG Target Price Prediction Modeling Methodology

With the up-gradation of technology and exploration of new machine learning models, the stock market data analysis has gained attention as these models provide a platform for businessman and traders to choose more profitable stocks. As these data are in large volumes and highly complex so a need of more efficient machine learning model for daily predictions is always looked upon. We consider BIG TECHNOLOGIES PLC Stock Decision Process with Logistic Regression where A is the set of discrete actions of LON:BIG 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(Logistic 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(Modular Neural Network (Financial Sentiment Analysis)) X S(n):→ (n+8 weeks) S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of LON:BIG 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?

LON:BIG Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:BIG BIG TECHNOLOGIES PLC
Time series to forecast n: 25 Sep 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:BIG 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

BIG TECHNOLOGIES PLC assigned short-term B2 & long-term B3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) with Logistic Regression1,2,3,4 and conclude that the LON:BIG stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:BIG stock.

Financial State Forecast for LON:BIG Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B3
Operational Risk 5446
Market Risk4158
Technical Analysis7137
Fundamental Analysis6931
Risk Unsystematic4352

Prediction Confidence Score

Trust metric by Neural Network: 78 out of 100 with 542 signals.

References

  1. Bessler, D. A. T. Covey (1991), "Cointegration: Some results on U.S. cattle prices," Journal of Futures Markets, 11, 461–474.
  2. Dietterich TG. 2000. Ensemble methods in machine learning. In Multiple Classifier Systems: First International Workshop, Cagliari, Italy, June 21–23, pp. 1–15. Berlin: Springer
  3. Hartford J, Lewis G, Taddy M. 2016. Counterfactual prediction with deep instrumental variables networks. arXiv:1612.09596 [stat.AP]
  4. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
  5. V. Mnih, A. P. Badia, M. Mirza, A. Graves, T. P. Lillicrap, T. Harley, D. Silver, and K. Kavukcuoglu. Asynchronous methods for deep reinforcement learning. In Proceedings of the 33nd International Conference on Machine Learning, ICML 2016, New York City, NY, USA, June 19-24, 2016, pages 1928–1937, 2016
  6. Bamler R, Mandt S. 2017. Dynamic word embeddings via skip-gram filtering. In Proceedings of the 34th Inter- national Conference on Machine Learning, pp. 380–89. La Jolla, CA: Int. Mach. Learn. Soc.
  7. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
Frequently Asked QuestionsQ: What is the prediction methodology for LON:BIG stock?
A: LON:BIG stock prediction methodology: We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) and Logistic Regression
Q: Is LON:BIG stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:BIG Stock.
Q: Is BIG TECHNOLOGIES PLC stock a good investment?
A: The consensus rating for BIG TECHNOLOGIES PLC is Hold and assigned short-term B2 & long-term B3 forecasted stock rating.
Q: What is the consensus rating of LON:BIG stock?
A: The consensus rating for LON:BIG is Hold.
Q: What is the prediction period for LON:BIG stock?
A: The prediction period for LON:BIG is (n+8 weeks)

Premium

  • Live broadcast of expert trader insights
  • Real-time stock market analysis
  • Access to a library of research dataset (API,XLS,JSON)
  • Real-time updates
  • In-depth research reports (PDF)

Login
This project is licensed under the license; additional terms may apply.