Modelling A.I. in Economics

Buy, sell or hold: FME.DE Stock Forecast

The prediction of a stock market direction may serve as an early recommendation system for short-term investors and as an early financial distress warning system for long-term shareholders. We evaluate Fresenius Medical Care prediction models with Transfer Learning (ML) and Pearson Correlation1,2,3,4 and conclude that the FME.DE 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 Sell FME.DE stock.


Keywords: FME.DE, Fresenius Medical Care, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Can neural networks predict stock market?
  2. Is it better to buy and sell or hold?
  3. Probability Distribution

FME.DE Target Price Prediction Modeling Methodology

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 consider Fresenius Medical Care Stock Decision Process with Pearson Correlation where A is the set of discrete actions of FME.DE 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(Pearson Correlation)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(Transfer Learning (ML)) X S(n):→ (n+6 month) r s rs

n:Time series to forecast

p:Price signals of FME.DE 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?

FME.DE Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: FME.DE Fresenius Medical Care
Time series to forecast n: 23 Sep 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Sell FME.DE 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

Fresenius Medical Care assigned short-term B2 & long-term B1 forecasted stock rating. We evaluate the prediction models Transfer Learning (ML) with Pearson Correlation1,2,3,4 and conclude that the FME.DE 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 Sell FME.DE stock.

Financial State Forecast for FME.DE Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B1
Operational Risk 3746
Market Risk6562
Technical Analysis6152
Fundamental Analysis3644
Risk Unsystematic7582

Prediction Confidence Score

Trust metric by Neural Network: 78 out of 100 with 538 signals.

References

  1. S. Devlin, L. Yliniemi, D. Kudenko, and K. Tumer. Potential-based difference rewards for multiagent reinforcement learning. In Proceedings of the Thirteenth International Joint Conference on Autonomous Agents and Multiagent Systems, May 2014
  2. Ashley, R. (1983), "On the usefulness of macroeconomic forecasts as inputs to forecasting models," Journal of Forecasting, 2, 211–223.
  3. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  4. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
  5. Farrell MH, Liang T, Misra S. 2018. Deep neural networks for estimation and inference: application to causal effects and other semiparametric estimands. arXiv:1809.09953 [econ.EM]
  6. J. Filar, D. Krass, and K. Ross. Percentile performance criteria for limiting average Markov decision pro- cesses. IEEE Transaction of Automatic Control, 40(1):2–10, 1995.
  7. Scott SL. 2010. A modern Bayesian look at the multi-armed bandit. Appl. Stoch. Models Bus. Ind. 26:639–58
Frequently Asked QuestionsQ: What is the prediction methodology for FME.DE stock?
A: FME.DE stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Pearson Correlation
Q: Is FME.DE stock a buy or sell?
A: The dominant strategy among neural network is to Sell FME.DE Stock.
Q: Is Fresenius Medical Care stock a good investment?
A: The consensus rating for Fresenius Medical Care is Sell and assigned short-term B2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of FME.DE stock?
A: The consensus rating for FME.DE is Sell.
Q: What is the prediction period for FME.DE stock?
A: The prediction period for FME.DE is (n+6 month)

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