## Abstract

**We evaluate Dow Jones Industrial Average Index prediction models with Modular Neural Network (DNN Layer) and Logistic Regression ^{1,2,3,4} and conclude that the Dow Jones Industrial Average Index 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 Dow Jones Industrial Average Index stock.**

**Dow Jones Industrial Average Index, Dow Jones Industrial Average Index, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.**

*Keywords:*## Key Points

- How do you decide buy or sell a stock?
- Fundemental Analysis with Algorithmic Trading
- Can stock prices be predicted?

## Dow Jones Industrial Average Index Target Price Prediction Modeling Methodology

We consider Dow Jones Industrial Average Index Stock Decision Process with Logistic Regression where A is the set of discrete actions of Dow Jones Industrial Average 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(Logistic Regression)

^{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(Modular Neural Network (DNN Layer)) X S(n):→ (n+8 weeks) $\sum _{i=1}^{n}\left({a}_{i}\right)$

n:Time series to forecast

p:Price signals of Dow Jones Industrial Average 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?

## Dow Jones Industrial Average Index Stock Forecast (Buy or Sell) for (n+8 weeks)

**Sample Set:**Neural Network

**Stock/Index:**Dow Jones Industrial Average Index Dow Jones Industrial Average Index

**Time series to forecast n: 09 Sep 2022**for (n+8 weeks)

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

Dow Jones Industrial Average Index assigned short-term Baa2 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (DNN Layer) with Logistic Regression ^{1,2,3,4} and conclude that the Dow Jones Industrial Average Index 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 Dow Jones Industrial Average Index stock.**

### Financial State Forecast for Dow Jones Industrial Average Index Stock Options & Futures

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

Outlook* | Baa2 | Ba3 |

Operational Risk | 90 | 50 |

Market Risk | 85 | 66 |

Technical Analysis | 66 | 74 |

Fundamental Analysis | 66 | 78 |

Risk Unsystematic | 66 | 51 |

### Prediction Confidence Score

## References

- P. Milgrom and I. Segal. Envelope theorems for arbitrary choice sets. Econometrica, 70(2):583–601, 2002
- Mnih A, Teh YW. 2012. A fast and simple algorithm for training neural probabilistic language models. In Proceedings of the 29th International Conference on Machine Learning, pp. 419–26. La Jolla, CA: Int. Mach. Learn. Soc.
- Chipman HA, George EI, McCulloch RE. 2010. Bart: Bayesian additive regression trees. Ann. Appl. Stat. 4:266–98
- Challen, D. W. A. J. Hagger (1983), Macroeconomic Systems: Construction, Validation and Applications. New York: St. Martin's Press.
- Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, et al. 2018a. Double/debiased machine learning for treatment and structural parameters. Econom. J. 21:C1–68
- Hill JL. 2011. Bayesian nonparametric modeling for causal inference. J. Comput. Graph. Stat. 20:217–40
- R. Rockafellar and S. Uryasev. Optimization of conditional value-at-risk. Journal of Risk, 2:21–42, 2000.

## Frequently Asked Questions

Q: What is the prediction methodology for Dow Jones Industrial Average Index stock?A: Dow Jones Industrial Average Index stock prediction methodology: We evaluate the prediction models Modular Neural Network (DNN Layer) and Logistic Regression

Q: Is Dow Jones Industrial Average Index stock a buy or sell?

A: The dominant strategy among neural network is to Hold Dow Jones Industrial Average Index Stock.

Q: Is Dow Jones Industrial Average Index stock a good investment?

A: The consensus rating for Dow Jones Industrial Average Index is Hold and assigned short-term Baa2 & long-term Ba3 forecasted stock rating.

Q: What is the consensus rating of Dow Jones Industrial Average Index stock?

A: The consensus rating for Dow Jones Industrial Average Index is Hold.

Q: What is the prediction period for Dow Jones Industrial Average Index stock?

A: The prediction period for Dow Jones Industrial Average Index is (n+8 weeks)

- Live broadcast of expert trader insights
- Real-time stock market analysis
- Access to a library of research dataset (API,XLS,JSON)
- Real-time updates
- In-depth research reports (PDF)