Modelling A.I. in Economics

Should You Buy BEL 20 Index Right Now? (Stock Forecast)

Abstract

We evaluate BEL 20 Index prediction models with Deductive Inference (ML) and Spearman Correlation1,2,3,4 and conclude that the BEL 20 Index stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold BEL 20 Index stock.


Keywords: BEL 20 Index, BEL 20 Index, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Prediction Modeling
  2. Can neural networks predict stock market?
  3. Decision Making

BEL 20 Index Target Price Prediction Modeling Methodology

We consider BEL 20 Index Stock Decision Process with Spearman Correlation where A is the set of discrete actions of BEL 20 Index 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(Spearman Correlation)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(Deductive Inference (ML)) X S(n):→ (n+6 month) i = 1 n r i

n:Time series to forecast

p:Price signals of BEL 20 Index 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?

BEL 20 Index Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: BEL 20 Index BEL 20 Index
Time series to forecast n: 01 Sep 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold BEL 20 Index 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

BEL 20 Index assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Deductive Inference (ML) with Spearman Correlation1,2,3,4 and conclude that the BEL 20 Index stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Hold BEL 20 Index stock.

Financial State Forecast for BEL 20 Index Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Operational Risk 8266
Market Risk5090
Technical Analysis5130
Fundamental Analysis5690
Risk Unsystematic4153

Prediction Confidence Score

Trust metric by Neural Network: 76 out of 100 with 475 signals.

References

  1. T. Shardlow and A. Stuart. A perturbation theory for ergodic Markov chains and application to numerical approximations. SIAM journal on numerical analysis, 37(4):1120–1137, 2000
  2. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  3. Cortes C, Vapnik V. 1995. Support-vector networks. Mach. Learn. 20:273–97
  4. K. Tumer and D. Wolpert. A survey of collectives. In K. Tumer and D. Wolpert, editors, Collectives and the Design of Complex Systems, pages 1–42. Springer, 2004.
  5. Holland PW. 1986. Statistics and causal inference. J. Am. Stat. Assoc. 81:945–60
  6. Chen X. 2007. Large sample sieve estimation of semi-nonparametric models. In Handbook of Econometrics, Vol. 6B, ed. JJ Heckman, EE Learner, pp. 5549–632. Amsterdam: Elsevier
  7. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
Frequently Asked QuestionsQ: What is the prediction methodology for BEL 20 Index stock?
A: BEL 20 Index stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Spearman Correlation
Q: Is BEL 20 Index stock a buy or sell?
A: The dominant strategy among neural network is to Hold BEL 20 Index Stock.
Q: Is BEL 20 Index stock a good investment?
A: The consensus rating for BEL 20 Index is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of BEL 20 Index stock?
A: The consensus rating for BEL 20 Index is Hold.
Q: What is the prediction period for BEL 20 Index stock?
A: The prediction period for BEL 20 Index is (n+6 month)

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