## Abstract

**We evaluate Centerpoint Energy prediction models with Inductive Learning (ML) and Wilcoxon Rank-Sum Test ^{1,2,3,4} and conclude that the CNP 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 CNP stock.**

**CNP, Centerpoint Energy, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.**

*Keywords:*## Key Points

- Stock Forecast Based On a Predictive Algorithm
- Trading Signals
- Investment Risk

## CNP Target Price Prediction Modeling Methodology

We consider Centerpoint Energy Stock Decision Process with Wilcoxon Rank-Sum Test where A is the set of discrete actions of CNP 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(Wilcoxon Rank-Sum Test)

^{5,6,7}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Inductive Learning (ML)) X S(n):→ (n+8 weeks) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of CNP 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?

## CNP Stock Forecast (Buy or Sell) for (n+8 weeks)

**Sample Set:**Neural Network

**Stock/Index:**CNP Centerpoint Energy

**Time series to forecast n: 08 Sep 2022**for (n+8 weeks)

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold CNP 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

Centerpoint Energy assigned short-term B2 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Inductive Learning (ML) with Wilcoxon Rank-Sum Test ^{1,2,3,4} and conclude that the CNP 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 CNP stock.**

### Financial State Forecast for CNP Stock Options & Futures

Rating | Short-Term | Long-Term Senior |
---|---|---|

Outlook* | B2 | Ba3 |

Operational Risk | 36 | 80 |

Market Risk | 45 | 83 |

Technical Analysis | 87 | 38 |

Fundamental Analysis | 51 | 62 |

Risk Unsystematic | 56 | 44 |

### Prediction Confidence Score

## References

- 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
- Ruiz FJ, Athey S, Blei DM. 2017. SHOPPER: a probabilistic model of consumer choice with substitutes and complements. arXiv:1711.03560 [stat.ML]
- Dimakopoulou M, Zhou Z, Athey S, Imbens G. 2018. Balanced linear contextual bandits. arXiv:1812.06227 [cs.LG]
- Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
- Chernozhukov V, Escanciano JC, Ichimura H, Newey WK. 2016b. Locally robust semiparametric estimation. arXiv:1608.00033 [math.ST]
- Hoerl AE, Kennard RW. 1970. Ridge regression: biased estimation for nonorthogonal problems. Technometrics 12:55–67
- Barkan O. 2016. Bayesian neural word embedding. arXiv:1603.06571 [math.ST]

## Frequently Asked Questions

Q: What is the prediction methodology for CNP stock?A: CNP stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Wilcoxon Rank-Sum Test

Q: Is CNP stock a buy or sell?

A: The dominant strategy among neural network is to Hold CNP Stock.

Q: Is Centerpoint Energy stock a good investment?

A: The consensus rating for Centerpoint Energy is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.

Q: What is the consensus rating of CNP stock?

A: The consensus rating for CNP is Hold.

Q: What is the prediction period for CNP stock?

A: The prediction period for CNP is (n+8 weeks)