Modelling A.I. in Economics

Lowe's assigned short-term Ba3 & long-term Ba2 forecasted stock rating.

Abstract

We evaluate Lowe's prediction models with Transfer Learning (ML) and Beta1,2,3,4 and conclude that the LOW 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 LOW stock.


Keywords: LOW, Lowe's, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Trading Signals
  2. Probability Distribution
  3. How accurate is machine learning in stock market?

LOW Target Price Prediction Modeling Methodology

We consider Lowe's Stock Decision Process with Beta where A is the set of discrete actions of LOW 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(Beta)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(Transfer Learning (ML)) X S(n):→ (n+4 weeks) i = 1 n a i

n:Time series to forecast

p:Price signals of LOW 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?

LOW Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: LOW Lowe's
Time series to forecast n: 01 Sep 2022 for (n+4 weeks)

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

Lowe's assigned short-term Ba3 & long-term Ba2 forecasted stock rating. We evaluate the prediction models Transfer Learning (ML) with Beta1,2,3,4 and conclude that the LOW 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 LOW stock.

Financial State Forecast for LOW Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3Ba2
Operational Risk 3256
Market Risk5249
Technical Analysis8861
Fundamental Analysis6582
Risk Unsystematic8289

Prediction Confidence Score

Trust metric by Neural Network: 92 out of 100 with 841 signals.

References

  1. A. Eck, L. Soh, S. Devlin, and D. Kudenko. Potential-based reward shaping for finite horizon online POMDP planning. Autonomous Agents and Multi-Agent Systems, 30(3):403–445, 2016
  2. M. Ono, M. Pavone, Y. Kuwata, and J. Balaram. Chance-constrained dynamic programming with application to risk-aware robotic space exploration. Autonomous Robots, 39(4):555–571, 2015
  3. Keane MP. 2013. Panel data discrete choice models of consumer demand. In The Oxford Handbook of Panel Data, ed. BH Baltagi, pp. 54–102. Oxford, UK: Oxford Univ. Press
  4. Robins J, Rotnitzky A. 1995. Semiparametric efficiency in multivariate regression models with missing data. J. Am. Stat. Assoc. 90:122–29
  5. Artis, M. J. W. Zhang (1990), "BVAR forecasts for the G-7," International Journal of Forecasting, 6, 349–362.
  6. Bessler, D. A. T. Covey (1991), "Cointegration: Some results on U.S. cattle prices," Journal of Futures Markets, 11, 461–474.
  7. J. Filar, L. Kallenberg, and H. Lee. Variance-penalized Markov decision processes. Mathematics of Opera- tions Research, 14(1):147–161, 1989
Frequently Asked QuestionsQ: What is the prediction methodology for LOW stock?
A: LOW stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Beta
Q: Is LOW stock a buy or sell?
A: The dominant strategy among neural network is to Hold LOW Stock.
Q: Is Lowe's stock a good investment?
A: The consensus rating for Lowe's is Hold and assigned short-term Ba3 & long-term Ba2 forecasted stock rating.
Q: What is the consensus rating of LOW stock?
A: The consensus rating for LOW is Hold.
Q: What is the prediction period for LOW stock?
A: The prediction period for LOW is (n+4 weeks)

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