Modelling A.I. in Economics

LON:LST Target Price Forecast

Prediction of future movement of stock prices has always been a challenging task for the researchers. While the advocates of the efficient market hypothesis (EMH) believe that it is impossible to design any predictive framework that can accurately predict the movement of stock prices, there are seminal work in the literature that have clearly demonstrated that the seemingly random movement patterns in the time series of a stock price can be predicted with a high level of accuracy. We evaluate LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC prediction models with Modular Neural Network (CNN Layer) and Polynomial Regression1,2,3,4 and conclude that the LON:LST stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold LON:LST stock.


Keywords: LON:LST, LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Can we predict stock market using machine learning?
  2. Buy, Sell and Hold Signals
  3. Why do we need predictive models?

LON:LST Target Price Prediction Modeling Methodology

Investors raise profit from stock market by maximising gains and minimising loses. The profit is difficult to raise because of the volatile nature of stock market prices. Predictive modelling allows investors to make informed decisions. We consider LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC Stock Decision Process with Polynomial Regression where A is the set of discrete actions of LON:LST 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(Polynomial 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 (CNN Layer)) X S(n):→ (n+16 weeks) e x rx

n:Time series to forecast

p:Price signals of LON:LST 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:LST Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: LON:LST LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC
Time series to forecast n: 15 Sep 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold LON:LST 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

LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC assigned short-term Ba3 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (CNN Layer) with Polynomial Regression1,2,3,4 and conclude that the LON:LST stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold LON:LST stock.

Financial State Forecast for LON:LST Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3B2
Operational Risk 5273
Market Risk4847
Technical Analysis8338
Fundamental Analysis8648
Risk Unsystematic5740

Prediction Confidence Score

Trust metric by Neural Network: 79 out of 100 with 862 signals.

References

  1. Athey S, Tibshirani J, Wager S. 2016b. Generalized random forests. arXiv:1610.01271 [stat.ME]
  2. G. Theocharous and A. Hallak. Lifetime value marketing using reinforcement learning. RLDM 2013, page 19, 2013
  3. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
  4. Friedberg R, Tibshirani J, Athey S, Wager S. 2018. Local linear forests. arXiv:1807.11408 [stat.ML]
  5. Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
  6. Swaminathan A, Joachims T. 2015. Batch learning from logged bandit feedback through counterfactual risk minimization. J. Mach. Learn. Res. 16:1731–55
  7. Bickel P, Klaassen C, Ritov Y, Wellner J. 1998. Efficient and Adaptive Estimation for Semiparametric Models. Berlin: Springer
Frequently Asked QuestionsQ: What is the prediction methodology for LON:LST stock?
A: LON:LST stock prediction methodology: We evaluate the prediction models Modular Neural Network (CNN Layer) and Polynomial Regression
Q: Is LON:LST stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:LST Stock.
Q: Is LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC stock a good investment?
A: The consensus rating for LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC is Hold and assigned short-term Ba3 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of LON:LST stock?
A: The consensus rating for LON:LST is Hold.
Q: What is the prediction period for LON:LST stock?
A: The prediction period for LON:LST is (n+16 weeks)

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