In this paper, we propose a robust and novel hybrid model for prediction of stock returns. The proposed model is constituted of two linear models: autoregressive moving average model, exponential smoothing model and a non-linear model: recurrent neural network. Training data for recurrent neural network is generated by a new regression model. Recurrent neural network produces satisfactory predictions as compared to linear models. With the goal to further improve the accuracy of predictions, the proposed hybrid prediction model merges predictions obtained from these three prediction based models. We evaluate CAMELLIA PLC prediction models with Modular Neural Network (Financial Sentiment Analysis) and Polynomial Regression1,2,3,4 and conclude that the LON:CAM 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 Buy LON:CAM stock.

Keywords: LON:CAM, CAMELLIA 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. What is prediction model?
3. What is the use of Markov decision process?

LON:CAM Target Price Prediction Modeling Methodology

The main perfect of this composition is to discover the stylish version to prognosticate the cost of the inventory request. During the procedure of analyzing the colorful ways and variables to remember, we plant that approaches similar as Random woodland, machine help Vector were not absolutely exploited. We consider CAMELLIA PLC Stock Decision Process with Polynomial Regression where A is the set of discrete actions of LON:CAM 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= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (Financial Sentiment Analysis)) X S(n):→ (n+8 weeks) $∑ i = 1 n a i$

n:Time series to forecast

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

Sample Set: Neural Network
Stock/Index: LON:CAM CAMELLIA PLC
Time series to forecast n: 19 Sep 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy LON:CAM 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

CAMELLIA PLC assigned short-term B2 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) with Polynomial Regression1,2,3,4 and conclude that the LON:CAM 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 Buy LON:CAM stock.

Financial State Forecast for LON:CAM Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B1
Operational Risk 7434
Market Risk3646
Technical Analysis7254
Fundamental Analysis4772
Risk Unsystematic3682

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 725 signals.

References

1. Breiman L. 2001a. Random forests. Mach. Learn. 45:5–32
2. J. Filar, D. Krass, and K. Ross. Percentile performance criteria for limiting average Markov decision pro- cesses. IEEE Transaction of Automatic Control, 40(1):2–10, 1995.
3. Friedman JH. 2002. Stochastic gradient boosting. Comput. Stat. Data Anal. 38:367–78
4. Andrews, D. W. K. W. Ploberger (1994), "Optimal tests when a nuisance parameter is present only under the alternative," Econometrica, 62, 1383–1414.
5. J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
6. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
7. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
Frequently Asked QuestionsQ: What is the prediction methodology for LON:CAM stock?
A: LON:CAM stock prediction methodology: We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) and Polynomial Regression
Q: Is LON:CAM stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:CAM Stock.
Q: Is CAMELLIA PLC stock a good investment?
A: The consensus rating for CAMELLIA PLC is Buy and assigned short-term B2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:CAM stock?
A: The consensus rating for LON:CAM is Buy.
Q: What is the prediction period for LON:CAM stock?
A: The prediction period for LON:CAM is (n+8 weeks)