Modelling A.I. in Economics

CBSH Target Price Forecast

Abstract

We evaluate COMMERCE BANCSHARES prediction models with Ensemble Learning (ML) and Stepwise Regression1,2,3,4 and conclude that the CBSH stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy CBSH stock.


Keywords: CBSH, COMMERCE BANCSHARES, 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. Prediction Modeling
  3. Nash Equilibria

CBSH Target Price Prediction Modeling Methodology

We consider COMMERCE BANCSHARES Stock Decision Process with Stepwise Regression where A is the set of discrete actions of CBSH 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(Stepwise 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(Ensemble Learning (ML)) X S(n):→ (n+1 year) i = 1 n a i

n:Time series to forecast

p:Price signals of CBSH 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?

CBSH Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: CBSH COMMERCE BANCSHARES
Time series to forecast n: 07 Sep 2022 for (n+1 year)

According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy CBSH 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

COMMERCE BANCSHARES assigned short-term B2 & long-term B1 forecasted stock rating. We evaluate the prediction models Ensemble Learning (ML) with Stepwise Regression1,2,3,4 and conclude that the CBSH stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy CBSH stock.

Financial State Forecast for CBSH Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B1
Operational Risk 8058
Market Risk5548
Technical Analysis4866
Fundamental Analysis4276
Risk Unsystematic5744

Prediction Confidence Score

Trust metric by Neural Network: 90 out of 100 with 608 signals.

References

  1. D. Bertsekas. Nonlinear programming. Athena Scientific, 1999.
  2. Tibshirani R. 1996. Regression shrinkage and selection via the lasso. J. R. Stat. Soc. B 58:267–88
  3. Barrett, C. B. (1997), "Heteroscedastic price forecasting for food security management in developing countries," Oxford Development Studies, 25, 225–236.
  4. S. J. Russell and A. Zimdars. Q-decomposition for reinforcement learning agents. In Machine Learning, Proceedings of the Twentieth International Conference (ICML 2003), August 21-24, 2003, Washington, DC, USA, pages 656–663, 2003.
  5. Bastani H, Bayati M. 2015. Online decision-making with high-dimensional covariates. Work. Pap., Univ. Penn./ Stanford Grad. School Bus., Philadelphia/Stanford, CA
  6. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
  7. H. Khalil and J. Grizzle. Nonlinear systems, volume 3. Prentice hall Upper Saddle River, 2002.
Frequently Asked QuestionsQ: What is the prediction methodology for CBSH stock?
A: CBSH stock prediction methodology: We evaluate the prediction models Ensemble Learning (ML) and Stepwise Regression
Q: Is CBSH stock a buy or sell?
A: The dominant strategy among neural network is to Buy CBSH Stock.
Q: Is COMMERCE BANCSHARES stock a good investment?
A: The consensus rating for COMMERCE BANCSHARES is Buy and assigned short-term B2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of CBSH stock?
A: The consensus rating for CBSH is Buy.
Q: What is the prediction period for CBSH stock?
A: The prediction period for CBSH is (n+1 year)

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