Short/Long Term Stocks: LON:WTAN Stock Forecast

With the advent of machine learning, numerous approaches have been proposed to forecast stock prices. Various models have been developed to date such as Recurrent Neural Networks, Long Short-Term Memory, Convolutional Neural Network sliding window, etc., but were not accurate enough. Here, the aim is to predict the price of a stock and compare the results obtained using three major algorithms namely Kalman filters, XGBoost and ARIMA. We evaluate WITAN INVESTMENT TRUST PLC prediction models with Multi-Instance Learning (ML) and Lasso Regression^1,2,3,4 and conclude that the LON:WTAN 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:WTAN stock.

Keywords: LON:WTAN, WITAN INVESTMENT TRUST PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

1. Can statistics predict the future?
2. Technical Analysis with Algorithmic Trading
3. What are the most successful trading algorithms?

LON:WTAN Target Price Prediction Modeling Methodology

This paper examines the theory and practice of regression techniques for prediction of stock price trend by using a transformed data set in ordinal data format. The original pretransformed data source contains data of heterogeneous data types used for handling of currency values and financial ratios. The data formats in currency values and financial ratios provide a process for computation of stock prices. The transformed data set contains only a standardized ordinal data type which provides a process to measure rankings of stock price trends. We consider WITAN INVESTMENT TRUST PLC Stock Decision Process with Lasso Regression where A is the set of discrete actions of LON:WTAN 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(Lasso Regression)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Multi-Instance Learning (ML)) X S(n):→ (n+3 month) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

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

Sample Set: Neural Network
Stock/Index: LON:WTAN WITAN INVESTMENT TRUST PLC
Time series to forecast n: 14 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:WTAN 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

WITAN INVESTMENT TRUST PLC assigned short-term Ba3 & long-term B1 forecasted stock rating. We evaluate the prediction models Multi-Instance Learning (ML) with Lasso Regression^1,2,3,4 and conclude that the LON:WTAN 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:WTAN stock.

Financial State Forecast for LON:WTAN Stock Options & Futures

Rating	Short-Term	Long-Term Senior
Outlook*	Ba3	B1
Operational Risk	65	32
Market Risk	85	83
Technical Analysis	35	73
Fundamental Analysis	85	36
Risk Unsystematic	54	64

Prediction Confidence Score

Trust metric by Neural Network: 80 out of 100 with 539 signals.

References

1. G. J. Laurent, L. Matignon, and N. L. Fort-Piat. The world of independent learners is not Markovian. Int. J. Know.-Based Intell. Eng. Syst., 15(1):55–64, 2011
2. Sutton RS, Barto AG. 1998. Reinforcement Learning: An Introduction. Cambridge, MA: MIT Press
3. Hartford J, Lewis G, Taddy M. 2016. Counterfactual prediction with deep instrumental variables networks. arXiv:1612.09596 [stat.AP]
4. Bessler, D. A. T. Covey (1991), "Cointegration: Some results on U.S. cattle prices," Journal of Futures Markets, 11, 461–474.
5. 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
6. Bai J. 2003. Inferential theory for factor models of large dimensions. Econometrica 71:135–71
7. E. Altman, K. Avrachenkov, and R. N ́u ̃nez-Queija. Perturbation analysis for denumerable Markov chains with application to queueing models. Advances in Applied Probability, pages 839–853, 2004

Frequently Asked Questions

Q: What is the prediction methodology for LON:WTAN stock?
A: LON:WTAN stock prediction methodology: We evaluate the prediction models Multi-Instance Learning (ML) and Lasso Regression
Q: Is LON:WTAN stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:WTAN Stock.
Q: Is WITAN INVESTMENT TRUST PLC stock a good investment?
A: The consensus rating for WITAN INVESTMENT TRUST PLC is Buy and assigned short-term Ba3 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:WTAN stock?
A: The consensus rating for LON:WTAN is Buy.
Q: What is the prediction period for LON:WTAN stock?
A: The prediction period for LON:WTAN is (n+3 month)

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