Abstract

We evaluate Dow Jones Industrial Average Index prediction models with Modular Neural Network (DNN Layer) and Logistic Regression1,2,3,4 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.

Keywords: 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.

Key Points

1. How do you decide buy or sell a stock?
2. Fundemental Analysis with Algorithmic Trading
3. 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 Î³ ∈ [0, 1] is a move factor for expectation.1,2,3,4

F(Logistic Regression)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (DNN Layer)) X S(n):→ (n+8 weeks) $∑ i = 1 n a i$

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 Regression1,2,3,4 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*Baa2Ba3
Operational Risk 9050
Market Risk8566
Technical Analysis6674
Fundamental Analysis6678
Risk Unsystematic6651

Prediction Confidence Score

Trust metric by Neural Network: 84 out of 100 with 864 signals.

References

1. P. Milgrom and I. Segal. Envelope theorems for arbitrary choice sets. Econometrica, 70(2):583–601, 2002
2. 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.
3. Chipman HA, George EI, McCulloch RE. 2010. Bart: Bayesian additive regression trees. Ann. Appl. Stat. 4:266–98
4. Challen, D. W. A. J. Hagger (1983), Macroeconomic Systems: Construction, Validation and Applications. New York: St. Martin's Press.
5. 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
6. Hill JL. 2011. Bayesian nonparametric modeling for causal inference. J. Comput. Graph. Stat. 20:217–40
7. R. Rockafellar and S. Uryasev. Optimization of conditional value-at-risk. Journal of Risk, 2:21–42, 2000.
Frequently Asked QuestionsQ: 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)