Modelling A.I. in Economics

Is ABMD a Buy?

Abstract

We evaluate Abiomed prediction models with Inductive Learning (ML) and ElasticNet Regression1,2,3,4 and conclude that the ABMD 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 Buy ABMD stock.


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

Key Points

  1. Technical Analysis with Algorithmic Trading
  2. Dominated Move
  3. Can we predict stock market using machine learning?

ABMD Target Price Prediction Modeling Methodology

We consider Abiomed Stock Decision Process with ElasticNet Regression where A is the set of discrete actions of ABMD 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(ElasticNet 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(Inductive Learning (ML)) X S(n):→ (n+6 month) e x rx

n:Time series to forecast

p:Price signals of ABMD 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?

ABMD Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: ABMD Abiomed
Time series to forecast n: 01 Sep 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy ABMD 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

Abiomed assigned short-term B3 & long-term Baa2 forecasted stock rating. We evaluate the prediction models Inductive Learning (ML) with ElasticNet Regression1,2,3,4 and conclude that the ABMD 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 Buy ABMD stock.

Financial State Forecast for ABMD Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3Baa2
Operational Risk 4168
Market Risk4081
Technical Analysis4788
Fundamental Analysis4674
Risk Unsystematic6060

Prediction Confidence Score

Trust metric by Neural Network: 76 out of 100 with 511 signals.

References

  1. Bengio Y, Ducharme R, Vincent P, Janvin C. 2003. A neural probabilistic language model. J. Mach. Learn. Res. 3:1137–55
  2. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
  3. Clements, M. P. D. F. Hendry (1995), "Forecasting in cointegrated systems," Journal of Applied Econometrics, 10, 127–146.
  4. Belsley, D. A. (1988), "Modelling and forecast reliability," International Journal of Forecasting, 4, 427–447.
  5. J. Baxter and P. Bartlett. Infinite-horizon policy-gradient estimation. Journal of Artificial Intelligence Re- search, 15:319–350, 2001.
  6. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  7. J. Filar, L. Kallenberg, and H. Lee. Variance-penalized Markov decision processes. Mathematics of Opera- tions Research, 14(1):147–161, 1989
Frequently Asked QuestionsQ: What is the prediction methodology for ABMD stock?
A: ABMD stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and ElasticNet Regression
Q: Is ABMD stock a buy or sell?
A: The dominant strategy among neural network is to Buy ABMD Stock.
Q: Is Abiomed stock a good investment?
A: The consensus rating for Abiomed is Buy and assigned short-term B3 & long-term Baa2 forecasted stock rating.
Q: What is the consensus rating of ABMD stock?
A: The consensus rating for ABMD is Buy.
Q: What is the prediction period for ABMD stock?
A: The prediction period for ABMD is (n+6 month)

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