## Abstract

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

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

*Keywords:*## Key Points

- How accurate is machine learning in stock market?
- Operational Risk
- Dominated Move

## PSI Index Target Price Prediction Modeling Methodology

We consider PSI Index Stock Decision Process with Linear Regression where A is the set of discrete actions of PSI 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(Linear 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+6 month) $\begin{array}{l}\int {r}^{s}\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of PSI 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?

## PSI Index Stock Forecast (Buy or Sell) for (n+6 month)

**Sample Set:**Neural Network

**Stock/Index:**PSI Index PSI Index

**Time series to forecast n: 02 Sep 2022**for (n+6 month)

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

PSI Index assigned short-term B1 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (DNN Layer) with Linear Regression ^{1,2,3,4} and conclude that the PSI Index 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 PSI Index stock.**

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

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

Outlook* | B1 | Ba3 |

Operational Risk | 89 | 75 |

Market Risk | 43 | 71 |

Technical Analysis | 71 | 59 |

Fundamental Analysis | 56 | 83 |

Risk Unsystematic | 35 | 33 |

### Prediction Confidence Score

## References

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- S. Bhatnagar and K. Lakshmanan. An online actor-critic algorithm with function approximation for con- strained Markov decision processes. Journal of Optimization Theory and Applications, 153(3):688–708, 2012.
- Imbens GW, Rubin DB. 2015. Causal Inference in Statistics, Social, and Biomedical Sciences. Cambridge, UK: Cambridge Univ. Press
- Challen, D. W. A. J. Hagger (1983), Macroeconomic Systems: Construction, Validation and Applications. New York: St. Martin's Press.
- Ruiz FJ, Athey S, Blei DM. 2017. SHOPPER: a probabilistic model of consumer choice with substitutes and complements. arXiv:1711.03560 [stat.ML]
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- Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221

## Frequently Asked Questions

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

Q: Is PSI Index stock a buy or sell?

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

Q: Is PSI Index stock a good investment?

A: The consensus rating for PSI Index is Hold and assigned short-term B1 & long-term Ba3 forecasted stock rating.

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

A: The consensus rating for PSI Index is Hold.

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

A: The prediction period for PSI Index is (n+6 month)