Recently, numerous investigations for stock price prediction and portfolio management using machine learning have been trying to develop efficient mechanical trading systems. But these systems have a limitation in that they are mainly based on the supervised learning which is not so adequate for learning problems with long-term goals and delayed rewards. This paper proposes a method of applying reinforcement learning, suitable for modeling and learning various kinds of interactions in real situations, to the problem of stock price prediction. We evaluate FRAGRANT PROSPERITY HOLDINGS LIMITED prediction models with Modular Neural Network (Market Direction Analysis) and Linear Regression1,2,3,4 and conclude that the LON:FPP 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 Hold LON:FPP stock.
Keywords: LON:FPP, FRAGRANT PROSPERITY HOLDINGS LIMITED, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.
Key Points
- What is Markov decision process in reinforcement learning?
- What is the best way to predict stock prices?
- Buy, Sell and Hold Signals
LON:FPP Target Price Prediction Modeling Methodology
Stock index price prediction is prevalent in both academic and economic fields. The index price is hard to forecast due to its uncertain noise. With the development of computer science, neural networks are applied in kinds of industrial fields. In this paper, we introduce four different methods in machine learning including three typical machine learning models: Multilayer Perceptron (MLP), Long Short Term Memory (LSTM) and Convolutional Neural Network (CNN) and one attention-based neural network. We consider FRAGRANT PROSPERITY HOLDINGS LIMITED Stock Decision Process with Linear Regression where A is the set of discrete actions of LON:FPP 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(Linear Regression)5,6,7= X R(Modular Neural Network (Market Direction Analysis)) X S(n):→ (n+3 month)
n:Time series to forecast
p:Price signals of LON:FPP 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:FPP Stock Forecast (Buy or Sell) for (n+3 month)
Sample Set: Neural NetworkStock/Index: LON:FPP FRAGRANT PROSPERITY HOLDINGS LIMITED
Time series to forecast n: 14 Sep 2022 for (n+3 month)
According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold LON:FPP 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
FRAGRANT PROSPERITY HOLDINGS LIMITED assigned short-term Baa2 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market Direction Analysis) with Linear Regression1,2,3,4 and conclude that the LON:FPP 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 Hold LON:FPP stock.
Financial State Forecast for LON:FPP Stock Options & Futures
| Rating | Short-Term | Long-Term Senior |
|---|---|---|
| Outlook* | Baa2 | B1 |
| Operational Risk | 83 | 73 |
| Market Risk | 53 | 63 |
| Technical Analysis | 80 | 40 |
| Fundamental Analysis | 89 | 50 |
| Risk Unsystematic | 73 | 52 |
Prediction Confidence Score
References
- Sutton RS, Barto AG. 1998. Reinforcement Learning: An Introduction. Cambridge, MA: MIT Press
- T. Shardlow and A. Stuart. A perturbation theory for ergodic Markov chains and application to numerical approximations. SIAM journal on numerical analysis, 37(4):1120–1137, 2000
- Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, et al. 2018a. Double/debiased machine learning for treatment and structural parameters. Econom. J. 21:C1–68
- Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, et al. 2016a. Double machine learning for treatment and causal parameters. Tech. Rep., Cent. Microdata Methods Pract., Inst. Fiscal Stud., London
- Keane MP. 2013. Panel data discrete choice models of consumer demand. In The Oxford Handbook of Panel Data, ed. BH Baltagi, pp. 54–102. Oxford, UK: Oxford Univ. Press
- Künzel S, Sekhon J, Bickel P, Yu B. 2017. Meta-learners for estimating heterogeneous treatment effects using machine learning. arXiv:1706.03461 [math.ST]
- J. N. Foerster, Y. M. Assael, N. de Freitas, and S. Whiteson. Learning to communicate with deep multi-agent reinforcement learning. In Advances in Neural Information Processing Systems 29: Annual Conference on Neural Information Processing Systems 2016, December 5-10, 2016, Barcelona, Spain, pages 2137–2145, 2016.
Frequently Asked Questions
Q: What is the prediction methodology for LON:FPP stock?A: LON:FPP stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Linear Regression
Q: Is LON:FPP stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:FPP Stock.
Q: Is FRAGRANT PROSPERITY HOLDINGS LIMITED stock a good investment?
A: The consensus rating for FRAGRANT PROSPERITY HOLDINGS LIMITED is Hold and assigned short-term Baa2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:FPP stock?
A: The consensus rating for LON:FPP is Hold.
Q: What is the prediction period for LON:FPP stock?
A: The prediction period for LON:FPP is (n+3 month)
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