Modelling A.I. in Economics

LON:PRTC Stock Price Prediction

Social media comments have in the past had an instantaneous effect on stock markets. This paper investigates the sentiments expressed on the social media platform Twitter and their pr edictive impact on the Stock Market. We evaluate PURETECH HEALTH PLC prediction models with Modular Neural Network (Market News Sentiment Analysis) and Logistic Regression1,2,3,4 and conclude that the LON:PRTC 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:PRTC stock.


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

Key Points

  1. Stock Rating
  2. How accurate is machine learning in stock market?
  3. How do predictive algorithms actually work?

LON:PRTC Target Price Prediction Modeling Methodology

Development of linguistic technologies and penetration of social media provide powerful possibilities to investigate users' moods and psychological states of people. In this paper we discussed possibility to improve accuracy of stock market indicators predictions by using data about psychological states of Twitter users. For analysis of psychological states we used lexicon-based approach. We consider PURETECH HEALTH PLC Stock Decision Process with Logistic Regression where A is the set of discrete actions of LON:PRTC 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(Logistic 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 (Market News Sentiment Analysis)) X S(n):→ (n+8 weeks) r s rs

n:Time series to forecast

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

Sample Set: Neural Network
Stock/Index: LON:PRTC PURETECH HEALTH PLC
Time series to forecast n: 13 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:PRTC 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

PURETECH HEALTH PLC assigned short-term Caa2 & long-term B3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) with Logistic Regression1,2,3,4 and conclude that the LON:PRTC 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:PRTC stock.

Financial State Forecast for LON:PRTC Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Caa2B3
Operational Risk 4582
Market Risk4837
Technical Analysis3839
Fundamental Analysis3739
Risk Unsystematic5644

Prediction Confidence Score

Trust metric by Neural Network: 77 out of 100 with 793 signals.

References

  1. A. Tamar, Y. Glassner, and S. Mannor. Policy gradients beyond expectations: Conditional value-at-risk. In AAAI, 2015
  2. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
  3. Schapire RE, Freund Y. 2012. Boosting: Foundations and Algorithms. Cambridge, MA: MIT Press
  4. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  5. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  6. Bottomley, P. R. Fildes (1998), "The role of prices in models of innovation diffusion," Journal of Forecasting, 17, 539–555.
  7. Chernozhukov V, Newey W, Robins J. 2018c. Double/de-biased machine learning using regularized Riesz representers. arXiv:1802.08667 [stat.ML]
Frequently Asked QuestionsQ: What is the prediction methodology for LON:PRTC stock?
A: LON:PRTC stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) and Logistic Regression
Q: Is LON:PRTC stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:PRTC Stock.
Q: Is PURETECH HEALTH PLC stock a good investment?
A: The consensus rating for PURETECH HEALTH PLC is Hold and assigned short-term Caa2 & long-term B3 forecasted stock rating.
Q: What is the consensus rating of LON:PRTC stock?
A: The consensus rating for LON:PRTC is Hold.
Q: What is the prediction period for LON:PRTC stock?
A: The prediction period for LON:PRTC is (n+8 weeks)

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