## Abstract

**We evaluate Southwest Airlines prediction models with Transductive Learning (ML) and Chi-Square ^{1,2,3,4} and conclude that the LUV stock is predictable in the short/long term. **

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy LUV stock.**

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

*Keywords:*## Key Points

- Can we predict stock market using machine learning?
- Is now good time to invest?
- Which neural network is best for prediction?

## LUV Target Price Prediction Modeling Methodology

We consider Southwest Airlines Stock Decision Process with Chi-Square where A is the set of discrete actions of LUV 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(Chi-Square)

^{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(Transductive Learning (ML)) X S(n):→ (n+8 weeks) $\sum _{i=1}^{n}\left({s}_{i}\right)$

n:Time series to forecast

p:Price signals of LUV 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?

## LUV Stock Forecast (Buy or Sell) for (n+8 weeks)

**Sample Set:**Neural Network

**Stock/Index:**LUV Southwest Airlines

**Time series to forecast n: 06 Sep 2022**for (n+8 weeks)

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy LUV 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

Southwest Airlines assigned short-term Ba3 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Transductive Learning (ML) with Chi-Square ^{1,2,3,4} and conclude that the LUV stock is predictable in the short/long term.**

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy LUV stock.**

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

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

Outlook* | Ba3 | Ba3 |

Operational Risk | 55 | 34 |

Market Risk | 78 | 83 |

Technical Analysis | 90 | 74 |

Fundamental Analysis | 54 | 58 |

Risk Unsystematic | 50 | 81 |

### Prediction Confidence Score

## References

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- J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
- R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
- V. Borkar. A sensitivity formula for the risk-sensitive cost and the actor-critic algorithm. Systems & Control Letters, 44:339–346, 2001
- Vilnis L, McCallum A. 2015. Word representations via Gaussian embedding. arXiv:1412.6623 [cs.CL]
- Morris CN. 1983. Parametric empirical Bayes inference: theory and applications. J. Am. Stat. Assoc. 78:47–55
- Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40

## Frequently Asked Questions

Q: What is the prediction methodology for LUV stock?A: LUV stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Chi-Square

Q: Is LUV stock a buy or sell?

A: The dominant strategy among neural network is to Buy LUV Stock.

Q: Is Southwest Airlines stock a good investment?

A: The consensus rating for Southwest Airlines is Buy and assigned short-term Ba3 & long-term Ba3 forecasted stock rating.

Q: What is the consensus rating of LUV stock?

A: The consensus rating for LUV is Buy.

Q: What is the prediction period for LUV stock?

A: The prediction period for LUV is (n+8 weeks)