## Abstract

**We evaluate KOSPI Index prediction models with Modular Neural Network (DNN Layer) and Multiple Regression ^{1,2,3,4} and conclude that the KOSPI Index stock is predictable in the short/long term. **

**According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KOSPI Index stock.**

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

*Keywords:*## Key Points

- Market Risk
- What is Markov decision process in reinforcement learning?
- Short/Long Term Stocks

## KOSPI Index Target Price Prediction Modeling Methodology

We consider KOSPI Index Stock Decision Process with Multiple Regression where A is the set of discrete actions of KOSPI 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(Multiple 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+16 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 KOSPI 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?

## KOSPI Index Stock Forecast (Buy or Sell) for (n+16 weeks)

**Sample Set:**Neural Network

**Stock/Index:**KOSPI Index KOSPI Index

**Time series to forecast n: 02 Sep 2022**for (n+16 weeks)

**According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KOSPI 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

KOSPI Index assigned short-term B1 & long-term Baa2 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (DNN Layer) with Multiple Regression ^{1,2,3,4} and conclude that the KOSPI Index stock is predictable in the short/long term.**

**According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold KOSPI Index stock.**

### Financial State Forecast for KOSPI Index Stock Options & Futures

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

Outlook* | B1 | Baa2 |

Operational Risk | 87 | 56 |

Market Risk | 61 | 80 |

Technical Analysis | 46 | 73 |

Fundamental Analysis | 39 | 82 |

Risk Unsystematic | 77 | 71 |

### Prediction Confidence Score

## References

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## Frequently Asked Questions

Q: What is the prediction methodology for KOSPI Index stock?A: KOSPI Index stock prediction methodology: We evaluate the prediction models Modular Neural Network (DNN Layer) and Multiple Regression

Q: Is KOSPI Index stock a buy or sell?

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

Q: Is KOSPI Index stock a good investment?

A: The consensus rating for KOSPI Index is Hold and assigned short-term B1 & long-term Baa2 forecasted stock rating.

Q: What is the consensus rating of KOSPI Index stock?

A: The consensus rating for KOSPI Index is Hold.

Q: What is the prediction period for KOSPI Index stock?

A: The prediction period for KOSPI Index is (n+16 weeks)