Modelling A.I. in Economics

Should You Buy LON:SUN Right Now? (Stock Forecast)

In the finance world stock trading is one of the most important activities. Stock market prediction is an act of trying to determine the future value of a stock other financial instrument traded on a financial exchange. This paper explains the prediction of a stock using Machine Learning. The technical and fundamental or the time series analysis is used by the most of the stockbrokers while making the stock predictions. We evaluate SURGICAL INNOVATIONS GROUP PLC prediction models with Modular Neural Network (CNN Layer) and Ridge Regression1,2,3,4 and conclude that the LON:SUN 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 LON:SUN stock.


Keywords: LON:SUN, SURGICAL INNOVATIONS GROUP PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Understanding Buy, Sell, and Hold Ratings
  2. Which neural network is best for prediction?
  3. Which neural network is best for prediction?

LON:SUN Target Price Prediction Modeling Methodology

Predictions on stock market prices are a great challenge due to the fact that it is an immensely complex, chaotic and dynamic environment. There are many studies from various areas aiming to take on that challenge and Machine Learning approaches have been the focus of many of them. There are many examples of Machine Learning algorithms been able to reach satisfactory results when doing that type of prediction. This article studies the usage of LSTM networks on that scenario, to predict future trends of stock prices based on the price history, alongside with technical analysis indicators. We consider SURGICAL INNOVATIONS GROUP PLC Stock Decision Process with Ridge Regression where A is the set of discrete actions of LON:SUN 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(Ridge Regression)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(Modular Neural Network (CNN Layer)) X S(n):→ (n+6 month) r s rs

n:Time series to forecast

p:Price signals of LON:SUN 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:SUN Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: LON:SUN SURGICAL INNOVATIONS GROUP PLC
Time series to forecast n: 16 Sep 2022 for (n+6 month)

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

SURGICAL INNOVATIONS GROUP PLC assigned short-term Ba3 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (CNN Layer) with Ridge Regression1,2,3,4 and conclude that the LON:SUN 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 LON:SUN stock.

Financial State Forecast for LON:SUN Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3Ba3
Operational Risk 6572
Market Risk7540
Technical Analysis6569
Fundamental Analysis3461
Risk Unsystematic8967

Prediction Confidence Score

Trust metric by Neural Network: 77 out of 100 with 804 signals.

References

  1. Breiman L. 2001a. Random forests. Mach. Learn. 45:5–32
  2. Christou, C., P. A. V. B. Swamy G. S. Tavlas (1996), "Modelling optimal strategies for the allocation of wealth in multicurrency investments," International Journal of Forecasting, 12, 483–493.
  3. Akgiray, V. (1989), "Conditional heteroscedasticity in time series of stock returns: Evidence and forecasts," Journal of Business, 62, 55–80.
  4. M. J. Hausknecht. Cooperation and Communication in Multiagent Deep Reinforcement Learning. PhD thesis, The University of Texas at Austin, 2016
  5. Doudchenko N, Imbens GW. 2016. Balancing, regression, difference-in-differences and synthetic control methods: a synthesis. NBER Work. Pap. 22791
  6. Hastie T, Tibshirani R, Tibshirani RJ. 2017. Extended comparisons of best subset selection, forward stepwise selection, and the lasso. arXiv:1707.08692 [stat.ME]
  7. Chernozhukov V, Escanciano JC, Ichimura H, Newey WK. 2016b. Locally robust semiparametric estimation. arXiv:1608.00033 [math.ST]
Frequently Asked QuestionsQ: What is the prediction methodology for LON:SUN stock?
A: LON:SUN stock prediction methodology: We evaluate the prediction models Modular Neural Network (CNN Layer) and Ridge Regression
Q: Is LON:SUN stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:SUN Stock.
Q: Is SURGICAL INNOVATIONS GROUP PLC stock a good investment?
A: The consensus rating for SURGICAL INNOVATIONS GROUP PLC is Hold and assigned short-term Ba3 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:SUN stock?
A: The consensus rating for LON:SUN is Hold.
Q: What is the prediction period for LON:SUN stock?
A: The prediction period for LON:SUN is (n+6 month)

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