Modelling A.I. in Economics

Buy or Sell: LON:MTO Stock

The stock market prediction has attracted much attention from academia as well as business. Due to the non-linear, volatile and complex nature of the market, it is quite difficult to predict. As the stock markets grow bigger, more investors pay attention to develop a systematic approach to predict the stock market. We evaluate MITIE GROUP PLC prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Polynomial Regression1,2,3,4 and conclude that the LON:MTO 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 Wait until speculative trend diminishes LON:MTO stock.


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

Key Points

  1. Market Signals
  2. Is Target price a good indicator?
  3. Reaction Function

LON:MTO Target Price Prediction Modeling Methodology

In recent years there has been a significant growth of interest in the incorporation of historical series of variables related to stock prediction into mathematical models or computational algorithms in order to generate predictions or indications about expected price movements. We consider MITIE GROUP PLC Stock Decision Process with Polynomial Regression where A is the set of discrete actions of LON:MTO 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(Polynomial 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 (Emotional Trigger/Responses Analysis)) X S(n):→ (n+8 weeks) e x rx

n:Time series to forecast

p:Price signals of LON:MTO 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:MTO Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:MTO MITIE GROUP PLC
Time series to forecast n: 13 Sep 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:MTO 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

MITIE GROUP PLC assigned short-term B1 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Polynomial Regression1,2,3,4 and conclude that the LON:MTO 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 Wait until speculative trend diminishes LON:MTO stock.

Financial State Forecast for LON:MTO Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B2
Operational Risk 6636
Market Risk4566
Technical Analysis7077
Fundamental Analysis4950
Risk Unsystematic6036

Prediction Confidence Score

Trust metric by Neural Network: 75 out of 100 with 551 signals.

References

  1. Bell RM, Koren Y. 2007. Lessons from the Netflix prize challenge. ACM SIGKDD Explor. Newsl. 9:75–79
  2. Chow, G. C. (1960), "Tests of equality between sets of coefficients in two linear regressions," Econometrica, 28, 591–605.
  3. Harris ZS. 1954. Distributional structure. Word 10:146–62
  4. K. Boda and J. Filar. Time consistent dynamic risk measures. Mathematical Methods of Operations Research, 63(1):169–186, 2006
  5. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
  6. Athey S, Imbens GW. 2017b. The state of applied econometrics: causality and policy evaluation. J. Econ. Perspect. 31:3–32
  7. Tibshirani R. 1996. Regression shrinkage and selection via the lasso. J. R. Stat. Soc. B 58:267–88
Frequently Asked QuestionsQ: What is the prediction methodology for LON:MTO stock?
A: LON:MTO stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Polynomial Regression
Q: Is LON:MTO stock a buy or sell?
A: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:MTO Stock.
Q: Is MITIE GROUP PLC stock a good investment?
A: The consensus rating for MITIE GROUP PLC is Wait until speculative trend diminishes and assigned short-term B1 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of LON:MTO stock?
A: The consensus rating for LON:MTO is Wait until speculative trend diminishes.
Q: What is the prediction period for LON:MTO stock?
A: The prediction period for LON:MTO is (n+8 weeks)

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