## Abstract

We evaluate Hang Seng Index prediction models with Deductive Inference (ML) and Beta1,2,3,4 and conclude that the Hang Seng Index 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 Hang Seng Index stock.

Keywords: Hang Seng Index, Hang Seng Index, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

## Key Points

1. What are buy sell or hold recommendations?
2. Is Target price a good indicator?
3. Can neural networks predict stock market?

## Hang Seng Index Target Price Prediction Modeling Methodology

We consider Hang Seng Index Stock Decision Process with Beta where A is the set of discrete actions of Hang Seng 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(Beta)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Deductive Inference (ML)) X S(n):→ (n+1 year) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of Hang Seng 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?

## Hang Seng Index Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: Hang Seng Index Hang Seng Index
Time series to forecast n: 05 Sep 2022 for (n+1 year)

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

Hang Seng Index assigned short-term Baa2 & long-term Ba1 forecasted stock rating. We evaluate the prediction models Deductive Inference (ML) with Beta1,2,3,4 and conclude that the Hang Seng Index 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 Hang Seng Index stock.

### Financial State Forecast for Hang Seng Index Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Baa2Ba1
Operational Risk 8059
Market Risk8971
Technical Analysis8888
Fundamental Analysis6975
Risk Unsystematic6566

### Prediction Confidence Score

Trust metric by Neural Network: 72 out of 100 with 787 signals.

## References

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Frequently Asked QuestionsQ: What is the prediction methodology for Hang Seng Index stock?
A: Hang Seng Index stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Beta
Q: Is Hang Seng Index stock a buy or sell?
A: The dominant strategy among neural network is to Hold Hang Seng Index Stock.
Q: Is Hang Seng Index stock a good investment?
A: The consensus rating for Hang Seng Index is Hold and assigned short-term Baa2 & long-term Ba1 forecasted stock rating.
Q: What is the consensus rating of Hang Seng Index stock?
A: The consensus rating for Hang Seng Index is Hold.
Q: What is the prediction period for Hang Seng Index stock?
A: The prediction period for Hang Seng Index is (n+1 year)