Is now good time to invest? (LON:WATR Stock Forecast)


This paper tries to address the problem of stock market prediction leveraging artificial intelligence (AI) strategies. The stock market prediction can be modeled based on two principal analyses called technical and fundamental. In the technical analysis approach, the regression machine learning (ML) algorithms are employed to predict the stock price trend at the end of a business day based on the historical price data. In contrast, in the fundamental analysis, the classification ML algorithms are applied to classify the public sentiment based on news and social media. We evaluate WATER INTELLIGENCE PLC prediction models with Modular Neural Network (Market News Sentiment Analysis) and Chi-Square1,2,3,4 and conclude that the LON:WATR 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 Buy LON:WATR stock.


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

Key Points

  1. What are the most successful trading algorithms?
  2. Is now good time to invest?
  3. What is prediction model?

LON:WATR Target Price Prediction Modeling Methodology

Stock prediction with data mining techniques is one of the most important issues in finance being investigated by researchers across the globe. Data mining techniques can be used extensively in the financial markets to help investors make qualitative decision. One of the techniques is artificial neural network (ANN). However, in the application of ANN for predicting the financial market the use of technical analysis variables for stock prediction is predominant. In this paper, we present a hybridized approach which combines the use of the variables of technical and fundamental analysis of stock market indicators for prediction of future price of stock in order to improve on the existing approaches. We consider WATER INTELLIGENCE PLC Stock Decision Process with Chi-Square where A is the set of discrete actions of LON:WATR 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(Chi-Square)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 (Market News Sentiment Analysis)) X S(n):→ (n+3 month) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:WATR 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:WATR Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: LON:WATR WATER INTELLIGENCE PLC
Time series to forecast n: 16 Sep 2022 for (n+3 month)

According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Buy LON:WATR 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

WATER INTELLIGENCE PLC assigned short-term B1 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) with Chi-Square1,2,3,4 and conclude that the LON:WATR 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 Buy LON:WATR stock.

Financial State Forecast for LON:WATR Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B1
Operational Risk 4939
Market Risk4882
Technical Analysis7355
Fundamental Analysis5748
Risk Unsystematic8572

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 549 signals.

References

  1. H. Kushner and G. Yin. Stochastic approximation algorithms and applications. Springer, 1997.
  2. Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
  3. C. Szepesvári. Algorithms for Reinforcement Learning. Synthesis Lectures on Artificial Intelligence and Machine Learning. Morgan & Claypool Publishers, 2010
  4. Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
  5. Breiman L. 2001a. Random forests. Mach. Learn. 45:5–32
  6. Wu X, Kumar V, Quinlan JR, Ghosh J, Yang Q, et al. 2008. Top 10 algorithms in data mining. Knowl. Inform. Syst. 14:1–37
  7. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier
Frequently Asked QuestionsQ: What is the prediction methodology for LON:WATR stock?
A: LON:WATR stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) and Chi-Square
Q: Is LON:WATR stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:WATR Stock.
Q: Is WATER INTELLIGENCE PLC stock a good investment?
A: The consensus rating for WATER INTELLIGENCE PLC is Buy and assigned short-term B1 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:WATR stock?
A: The consensus rating for LON:WATR is Buy.
Q: What is the prediction period for LON:WATR stock?
A: The prediction period for LON:WATR is (n+3 month)

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