Modelling A.I. in Economics

Buy or Sell: ZTS Stock

Prediction of future movement of stock prices has been a subject matter of many research work. In this work, we propose a hybrid approach for stock price prediction using machine learning and deep learning-based methods. We evaluate Zoetis prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Chi-Square1,2,3,4 and conclude that the ZTS stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell ZTS stock.


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

Key Points

  1. Market Outlook
  2. How do you decide buy or sell a stock?
  3. Can machine learning predict?

ZTS Target Price Prediction Modeling Methodology

As stock data is characterized by highly noisy and non-stationary, stock price prediction is regarded as a knotty problem. In this paper, we propose new two-stage ensemble models by combining empirical mode decomposition (EMD) (or variational mode decomposition (VMD)), extreme learning machine (ELM) and improved harmony search (IHS) algorithm for stock price prediction, which are respectively named EMD–ELM–IHS and VMD–ELM–IHS. We consider Zoetis Stock Decision Process with Chi-Square where A is the set of discrete actions of ZTS 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(Chi-Square)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 (News Feed Sentiment Analysis)) X S(n):→ (n+3 month) i = 1 n a i

n:Time series to forecast

p:Price signals of ZTS 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?

ZTS Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: ZTS Zoetis
Time series to forecast n: 19 Sep 2022 for (n+3 month)

According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell ZTS 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

Zoetis assigned short-term B2 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Chi-Square1,2,3,4 and conclude that the ZTS stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell ZTS stock.

Financial State Forecast for ZTS Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B2
Operational Risk 7940
Market Risk3747
Technical Analysis8330
Fundamental Analysis3783
Risk Unsystematic3850

Prediction Confidence Score

Trust metric by Neural Network: 88 out of 100 with 517 signals.

References

  1. Athey S. 2017. Beyond prediction: using big data for policy problems. Science 355:483–85
  2. LeCun Y, Bengio Y, Hinton G. 2015. Deep learning. Nature 521:436–44
  3. Li L, Chu W, Langford J, Moon T, Wang X. 2012. An unbiased offline evaluation of contextual bandit algo- rithms with generalized linear models. In Proceedings of 4th ACM International Conference on Web Search and Data Mining, pp. 297–306. New York: ACM
  4. Imbens GW, Rubin DB. 2015. Causal Inference in Statistics, Social, and Biomedical Sciences. Cambridge, UK: Cambridge Univ. Press
  5. D. Bertsekas. Min common/max crossing duality: A geometric view of conjugacy in convex optimization. Lab. for Information and Decision Systems, MIT, Tech. Rep. Report LIDS-P-2796, 2009
  6. G. Konidaris, S. Osentoski, and P. Thomas. Value function approximation in reinforcement learning using the Fourier basis. In AAAI, 2011
  7. Hastie T, Tibshirani R, Wainwright M. 2015. Statistical Learning with Sparsity: The Lasso and Generalizations. New York: CRC Press
Frequently Asked QuestionsQ: What is the prediction methodology for ZTS stock?
A: ZTS stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Chi-Square
Q: Is ZTS stock a buy or sell?
A: The dominant strategy among neural network is to Sell ZTS Stock.
Q: Is Zoetis stock a good investment?
A: The consensus rating for Zoetis is Sell and assigned short-term B2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of ZTS stock?
A: The consensus rating for ZTS is Sell.
Q: What is the prediction period for ZTS stock?
A: The prediction period for ZTS is (n+3 month)

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