The aim of this study is to evaluate the effectiveness of using external indicators, such as commodity prices and currency exchange rates, in predicting movements. The performance of each technique is evaluated using different domain specific metrics. A comprehensive evaluation procedure is described, involving the use of trading simulations to assess the practical value of predictive models, and comparison with simple benchmarks that respond to underlying market growth. We evaluate Sensata Technologies prediction models with Inductive Learning (ML) and Spearman Correlation1,2,3,4 and conclude that the ST 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 Sell ST stock.
Keywords: ST, Sensata Technologies, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.
Key Points
- What is prediction model?
- What is neural prediction?
- What statistical methods are used to analyze data?
ST Target Price Prediction Modeling Methodology
Stock market prediction is a major exertion in the field of finance and establishing businesses. Stock market is totally uncertain as the prices of stocks keep fluctuating on a daily basis because of numerous factors that influence it. One of the traditional ways of predicting stock prices was by using only historical data. But with time it was observed that other factors such as peoples' sentiments and other news events occurring in and around the country affect the stock market, for e.g. national elections, natural calamity etc. We consider Sensata Technologies Stock Decision Process with Spearman Correlation where A is the set of discrete actions of ST 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(Spearman Correlation)5,6,7= X R(Inductive Learning (ML)) X S(n):→ (n+1 year)
n:Time series to forecast
p:Price signals of ST 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?
ST Stock Forecast (Buy or Sell) for (n+1 year)
Sample Set: Neural NetworkStock/Index: ST Sensata Technologies
Time series to forecast n: 25 Sep 2022 for (n+1 year)
According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Sell ST 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
Sensata Technologies assigned short-term B2 & long-term B1 forecasted stock rating. We evaluate the prediction models Inductive Learning (ML) with Spearman Correlation1,2,3,4 and conclude that the ST 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 Sell ST stock.
Financial State Forecast for ST Stock Options & Futures
| Rating | Short-Term | Long-Term Senior |
|---|---|---|
| Outlook* | B2 | B1 |
| Operational Risk | 74 | 52 |
| Market Risk | 42 | 68 |
| Technical Analysis | 32 | 52 |
| Fundamental Analysis | 63 | 79 |
| Risk Unsystematic | 54 | 42 |
Prediction Confidence Score
References
- Hastie T, Tibshirani R, Wainwright M. 2015. Statistical Learning with Sparsity: The Lasso and Generalizations. New York: CRC Press
- Doudchenko N, Imbens GW. 2016. Balancing, regression, difference-in-differences and synthetic control methods: a synthesis. NBER Work. Pap. 22791
- D. Bertsekas. Nonlinear programming. Athena Scientific, 1999.
- Artis, M. J. W. Zhang (1990), "BVAR forecasts for the G-7," International Journal of Forecasting, 6, 349–362.
- Arora S, Li Y, Liang Y, Ma T. 2016. RAND-WALK: a latent variable model approach to word embeddings. Trans. Assoc. Comput. Linguist. 4:385–99
- Mazumder R, Hastie T, Tibshirani R. 2010. Spectral regularization algorithms for learning large incomplete matrices. J. Mach. Learn. Res. 11:2287–322
- T. Shardlow and A. Stuart. A perturbation theory for ergodic Markov chains and application to numerical approximations. SIAM journal on numerical analysis, 37(4):1120–1137, 2000
Frequently Asked Questions
Q: What is the prediction methodology for ST stock?A: ST stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Spearman Correlation
Q: Is ST stock a buy or sell?
A: The dominant strategy among neural network is to Sell ST Stock.
Q: Is Sensata Technologies stock a good investment?
A: The consensus rating for Sensata Technologies is Sell and assigned short-term B2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of ST stock?
A: The consensus rating for ST is Sell.
Q: What is the prediction period for ST stock?
A: The prediction period for ST is (n+1 year)
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