Modelling A.I. in Economics

Is LON:DSW stock expected to rise?

Abstract

We evaluate DSW CAPITAL PLC prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:DSW stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:DSW stock.


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

Key Points

  1. Reaction Function
  2. Prediction Modeling
  3. What is prediction in deep learning?

LON:DSW Target Price Prediction Modeling Methodology

We consider DSW CAPITAL PLC Stock Decision Process with Statistical Hypothesis Testing where A is the set of discrete actions of LON:DSW 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(Statistical Hypothesis Testing)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 (News Feed Sentiment Analysis)) X S(n):→ (n+4 weeks) i = 1 n s i

n:Time series to forecast

p:Price signals of LON:DSW 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:DSW Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: LON:DSW DSW CAPITAL PLC
Time series to forecast n: 05 Sep 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:DSW 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

DSW CAPITAL PLC assigned short-term B3 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:DSW stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold LON:DSW stock.

Financial State Forecast for LON:DSW Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3B1
Operational Risk 8380
Market Risk4138
Technical Analysis4678
Fundamental Analysis4156
Risk Unsystematic3650

Prediction Confidence Score

Trust metric by Neural Network: 79 out of 100 with 682 signals.

References

  1. Dimakopoulou M, Zhou Z, Athey S, Imbens G. 2018. Balanced linear contextual bandits. arXiv:1812.06227 [cs.LG]
  2. M. L. Littman. Markov games as a framework for multi-agent reinforcement learning. In Ma- chine Learning, Proceedings of the Eleventh International Conference, Rutgers University, New Brunswick, NJ, USA, July 10-13, 1994, pages 157–163, 1994
  3. Hirano K, Porter JR. 2009. Asymptotics for statistical treatment rules. Econometrica 77:1683–701
  4. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
  5. Bewley, R. M. Yang (1998), "On the size and power of system tests for cointegration," Review of Economics and Statistics, 80, 675–679.
  6. Burgess, D. F. (1975), "Duality theory and pitfalls in the specification of technologies," Journal of Econometrics, 3, 105–121.
  7. Allen, P. G. (1994), "Economic forecasting in agriculture," International Journal of Forecasting, 10, 81–135.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:DSW stock?
A: LON:DSW stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Statistical Hypothesis Testing
Q: Is LON:DSW stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:DSW Stock.
Q: Is DSW CAPITAL PLC stock a good investment?
A: The consensus rating for DSW CAPITAL PLC is Hold and assigned short-term B3 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:DSW stock?
A: The consensus rating for LON:DSW is Hold.
Q: What is the prediction period for LON:DSW stock?
A: The prediction period for LON:DSW is (n+4 weeks)

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