Modelling A.I. in Economics

When should you buy or sell a stock? (TPX Stock Forecast)

Abstract

We evaluate Tempur Sealy International prediction models with Modular Neural Network (Social Media Sentiment Analysis) and Wilcoxon Rank-Sum Test1,2,3,4 and conclude that the TPX 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 Wait until speculative trend diminishes TPX stock.


Keywords: TPX, Tempur Sealy International, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Stock Forecast Based On a Predictive Algorithm
  2. Game Theory
  3. Market Risk

TPX Target Price Prediction Modeling Methodology

We consider Tempur Sealy International Stock Decision Process with Wilcoxon Rank-Sum Test where A is the set of discrete actions of TPX 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(Wilcoxon Rank-Sum Test)5,6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Social Media Sentiment Analysis)) X S(n):→ (n+1 year) R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of TPX 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?

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

Sample Set: Neural Network
Stock/Index: TPX Tempur Sealy International
Time series to forecast n: 02 Sep 2022 for (n+1 year)

According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Wait until speculative trend diminishes TPX 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

Tempur Sealy International assigned short-term B2 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Social Media Sentiment Analysis) with Wilcoxon Rank-Sum Test1,2,3,4 and conclude that the TPX 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 Wait until speculative trend diminishes TPX stock.

Financial State Forecast for TPX Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B2
Operational Risk 5732
Market Risk8547
Technical Analysis5357
Fundamental Analysis3472
Risk Unsystematic5646

Prediction Confidence Score

Trust metric by Neural Network: 78 out of 100 with 792 signals.

References

  1. Y. Le Tallec. Robust, risk-sensitive, and data-driven control of Markov decision processes. PhD thesis, Massachusetts Institute of Technology, 2007.
  2. C. Claus and C. Boutilier. The dynamics of reinforcement learning in cooperative multiagent systems. In Proceedings of the Fifteenth National Conference on Artificial Intelligence and Tenth Innovative Applications of Artificial Intelligence Conference, AAAI 98, IAAI 98, July 26-30, 1998, Madison, Wisconsin, USA., pages 746–752, 1998.
  3. Abadie A, Cattaneo MD. 2018. Econometric methods for program evaluation. Annu. Rev. Econ. 10:465–503
  4. 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
  5. Mnih A, Hinton GE. 2007. Three new graphical models for statistical language modelling. In International Conference on Machine Learning, pp. 641–48. La Jolla, CA: Int. Mach. Learn. Soc.
  6. Bamler R, Mandt S. 2017. Dynamic word embeddings via skip-gram filtering. In Proceedings of the 34th Inter- national Conference on Machine Learning, pp. 380–89. La Jolla, CA: Int. Mach. Learn. Soc.
  7. V. Borkar. An actor-critic algorithm for constrained Markov decision processes. Systems & Control Letters, 54(3):207–213, 2005.
Frequently Asked QuestionsQ: What is the prediction methodology for TPX stock?
A: TPX stock prediction methodology: We evaluate the prediction models Modular Neural Network (Social Media Sentiment Analysis) and Wilcoxon Rank-Sum Test
Q: Is TPX stock a buy or sell?
A: The dominant strategy among neural network is to Wait until speculative trend diminishes TPX Stock.
Q: Is Tempur Sealy International stock a good investment?
A: The consensus rating for Tempur Sealy International is Wait until speculative trend diminishes and assigned short-term B2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of TPX stock?
A: The consensus rating for TPX is Wait until speculative trend diminishes.
Q: What is the prediction period for TPX stock?
A: The prediction period for TPX is (n+1 year)

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