Modelling A.I. in Economics

How do you know when a stock will go up or down? (LON:SCIR Stock Forecast)

The research reported in the paper focuses on the stock market prediction problem, the main aim being the development of a methodology to forecast the stock closing price. The methodology is based on some novel variable selection methods and an analysis of neural network and support vector machines based prediction models. Also, a hybrid approach which combines the use of the variables derived from technical and fundamental analysis of stock market indicators in order to improve prediction results of the proposed approaches is reported in this paper. We evaluate SCIROCCO ENERGY PLC prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Linear Regression1,2,3,4 and conclude that the LON:SCIR 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 Hold LON:SCIR stock.


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

Key Points

  1. Is now good time to invest?
  2. What is the use of Markov decision process?
  3. Stock Rating

LON:SCIR Target Price Prediction Modeling Methodology

Predictions on stock market prices are a great challenge due to the fact that it is an immensely complex, chaotic and dynamic environment. There are many studies from various areas aiming to take on that challenge and Machine Learning approaches have been the focus of many of them. There are many examples of Machine Learning algorithms been able to reach satisfactory results when doing that type of prediction. This article studies the usage of LSTM networks on that scenario, to predict future trends of stock prices based on the price history, alongside with technical analysis indicators. We consider SCIROCCO ENERGY PLC Stock Decision Process with Linear Regression where A is the set of discrete actions of LON:SCIR 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= 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+1 year) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:SCIR 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:SCIR Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: LON:SCIR SCIROCCO ENERGY PLC
Time series to forecast n: 25 Sep 2022 for (n+1 year)

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

SCIROCCO ENERGY PLC assigned short-term B1 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Linear Regression1,2,3,4 and conclude that the LON:SCIR 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 Hold LON:SCIR stock.

Financial State Forecast for LON:SCIR Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1Ba3
Operational Risk 3241
Market Risk8252
Technical Analysis7789
Fundamental Analysis6664
Risk Unsystematic4470

Prediction Confidence Score

Trust metric by Neural Network: 90 out of 100 with 673 signals.

References

  1. Schapire RE, Freund Y. 2012. Boosting: Foundations and Algorithms. Cambridge, MA: MIT Press
  2. G. Konidaris, S. Osentoski, and P. Thomas. Value function approximation in reinforcement learning using the Fourier basis. In AAAI, 2011
  3. 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
  4. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  5. D. Bertsekas. Dynamic programming and optimal control. Athena Scientific, 1995.
  6. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  7. R. Sutton and A. Barto. Reinforcement Learning. The MIT Press, 1998
Frequently Asked QuestionsQ: What is the prediction methodology for LON:SCIR stock?
A: LON:SCIR stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Linear Regression
Q: Is LON:SCIR stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:SCIR Stock.
Q: Is SCIROCCO ENERGY PLC stock a good investment?
A: The consensus rating for SCIROCCO ENERGY PLC is Hold and assigned short-term B1 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:SCIR stock?
A: The consensus rating for LON:SCIR is Hold.
Q: What is the prediction period for LON:SCIR stock?
A: The prediction period for LON:SCIR is (n+1 year)

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