Modelling A.I. in Economics

Is LON:ASC Stock Buy or Sell? (Stock Forecast)

The presented paper modeled and predicted stock returns using LSTM. The historical data of stock market were transformed into 30-days-long sequences with 10 learning features and 7-day earning rate labeling. The model was fitted by training on 1200000 sequences and tested using the other 350000 sequences. We evaluate ASOS PLC prediction models with Active Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 and conclude that the LON:ASC stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:ASC stock.


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

Key Points

  1. Should I buy stocks now or wait amid such uncertainty?
  2. Buy, Sell and Hold Signals
  3. Market Risk

LON:ASC Target Price Prediction Modeling Methodology

Prediction of future movement of stock prices has been a subject matter of many research work. In this work, we propose a hybrid approach for stock price prediction using machine learning and deep learning-based methods. We consider ASOS PLC Stock Decision Process with Wilcoxon Rank-Sum Test where A is the set of discrete actions of LON:ASC 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(Wilcoxon Rank-Sum Test)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(Active Learning (ML)) X S(n):→ (n+8 weeks) e x rx

n:Time series to forecast

p:Price signals of LON:ASC 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:ASC Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:ASC ASOS PLC
Time series to forecast n: 18 Sep 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:ASC 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

ASOS PLC assigned short-term Ba3 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Active Learning (ML) with Wilcoxon Rank-Sum Test1,2,3,4 and conclude that the LON:ASC stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold LON:ASC stock.

Financial State Forecast for LON:ASC Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3Ba3
Operational Risk 7966
Market Risk3767
Technical Analysis8767
Fundamental Analysis6773
Risk Unsystematic4848

Prediction Confidence Score

Trust metric by Neural Network: 82 out of 100 with 468 signals.

References

  1. Li L, Chen S, Kleban J, Gupta A. 2014. Counterfactual estimation and optimization of click metrics for search engines: a case study. In Proceedings of the 24th International Conference on the World Wide Web, pp. 929–34. New York: ACM
  2. Andrews, D. W. K. (1993), "Tests for parameter instability and structural change with unknown change point," Econometrica, 61, 821–856.
  3. Artis, M. J. W. Zhang (1990), "BVAR forecasts for the G-7," International Journal of Forecasting, 6, 349–362.
  4. D. Bertsekas. Nonlinear programming. Athena Scientific, 1999.
  5. Chamberlain G. 2000. Econometrics and decision theory. J. Econom. 95:255–83
  6. Bessler, D. A. T. Covey (1991), "Cointegration: Some results on U.S. cattle prices," Journal of Futures Markets, 11, 461–474.
  7. Athey S, Tibshirani J, Wager S. 2016b. Generalized random forests. arXiv:1610.01271 [stat.ME]
Frequently Asked QuestionsQ: What is the prediction methodology for LON:ASC stock?
A: LON:ASC stock prediction methodology: We evaluate the prediction models Active Learning (ML) and Wilcoxon Rank-Sum Test
Q: Is LON:ASC stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:ASC Stock.
Q: Is ASOS PLC stock a good investment?
A: The consensus rating for ASOS PLC is Hold and assigned short-term Ba3 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:ASC stock?
A: The consensus rating for LON:ASC is Hold.
Q: What is the prediction period for LON:ASC stock?
A: The prediction period for LON:ASC is (n+8 weeks)

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