## Abstract

**We evaluate Southern Company prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Statistical Hypothesis Testing ^{1,2,3,4} and conclude that the SO stock is predictable in the short/long term. **

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold SO stock.**

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

*Keywords:*## Key Points

- Operational Risk
- What is the use of Markov decision process?
- Can neural networks predict stock market?

## SO Target Price Prediction Modeling Methodology

We consider Southern Company Stock Decision Process with Statistical Hypothesis Testing where A is the set of discrete actions of SO 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(Statistical Hypothesis Testing)

^{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 (News Feed Sentiment Analysis)) X S(n):→ (n+1 year) $\begin{array}{l}\int {e}^{x}\mathrm{rx}\end{array}$

n:Time series to forecast

p:Price signals of SO 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?

## SO Stock Forecast (Buy or Sell) for (n+1 year)

**Sample Set:**Neural Network

**Stock/Index:**SO Southern Company

**Time series to forecast n: 06 Sep 2022**for (n+1 year)

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold SO 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

Southern Company assigned short-term B1 & long-term B1 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Statistical Hypothesis Testing ^{1,2,3,4} and conclude that the SO stock is predictable in the short/long term.**

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold SO stock.**

### Financial State Forecast for SO Stock Options & Futures

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

Outlook* | B1 | B1 |

Operational Risk | 71 | 61 |

Market Risk | 46 | 66 |

Technical Analysis | 61 | 30 |

Fundamental Analysis | 43 | 64 |

Risk Unsystematic | 82 | 73 |

### Prediction Confidence Score

## References

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- Y. Le Tallec. Robust, risk-sensitive, and data-driven control of Markov decision processes. PhD thesis, Massachusetts Institute of Technology, 2007.
- Canova, F. B. E. Hansen (1995), "Are seasonal patterns constant over time? A test for seasonal stability," Journal of Business and Economic Statistics, 13, 237–252.
- 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.
- M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015

## Frequently Asked Questions

Q: What is the prediction methodology for SO stock?A: SO stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Statistical Hypothesis Testing

Q: Is SO stock a buy or sell?

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

Q: Is Southern Company stock a good investment?

A: The consensus rating for Southern Company is Hold and assigned short-term B1 & long-term B1 forecasted stock rating.

Q: What is the consensus rating of SO stock?

A: The consensus rating for SO is Hold.

Q: What is the prediction period for SO stock?

A: The prediction period for SO is (n+1 year)