The stock market has been an attractive field for a large number of organizers and investors to derive useful predictions. Fundamental knowledge of stock market can be utilised with technical indicators to investigate different perspectives of the financial market; also, the influence of various events, financial news, and/or opinions on investors' decisions and hence, market trends have been observed. Such information can be exploited to make reliable predictions and achieve higher profitability. Computational intelligence has emerged with various deep neural network (DNN) techniques to address complex stock market problems. We evaluate XPO Logistics prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Sign Test1,2,3,4 and conclude that the XPO stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell XPO stock.

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

Key Points

1. How do you decide buy or sell a stock?
2. Can we predict stock market using machine learning?
3. Reaction Function

XPO Target Price Prediction Modeling Methodology

Prediction of stock prices has been an important area of research for a long time. While supporters of the efficient market hypothesis believe that it is impossible to predict stock prices accurately, there are formal propositions demonstrating that accurate modeling and designing of appropriate variables may lead to models using which stock prices and stock price movement patterns can be very accurately predicted. We consider XPO Logistics Stock Decision Process with Sign Test where A is the set of discrete actions of XPO 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(Sign Test)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(Modular Neural Network (Emotional Trigger/Responses Analysis)) X S(n):→ (n+4 weeks) $∑ i = 1 n r i$

n:Time series to forecast

p:Price signals of XPO 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?

XPO Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: XPO XPO Logistics
Time series to forecast n: 15 Sep 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell XPO 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

XPO Logistics assigned short-term B1 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Sign Test1,2,3,4 and conclude that the XPO stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell XPO stock.

Financial State Forecast for XPO Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B2
Operational Risk 6231
Market Risk4586
Technical Analysis5486
Fundamental Analysis5538
Risk Unsystematic9033

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 478 signals.

References

1. Bertsimas D, King A, Mazumder R. 2016. Best subset selection via a modern optimization lens. Ann. Stat. 44:813–52
2. Athey S, Blei D, Donnelly R, Ruiz F. 2017b. Counterfactual inference for consumer choice across many prod- uct categories. AEA Pap. Proc. 108:64–67
3. Belloni A, Chernozhukov V, Hansen C. 2014. High-dimensional methods and inference on structural and treatment effects. J. Econ. Perspect. 28:29–50
4. Babula, R. A. (1988), "Contemporaneous correlation and modeling Canada's imports of U.S. crops," Journal of Agricultural Economics Research, 41, 33–38.
5. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
6. Ashley, R. (1983), "On the usefulness of macroeconomic forecasts as inputs to forecasting models," Journal of Forecasting, 2, 211–223.
7. Cortes C, Vapnik V. 1995. Support-vector networks. Mach. Learn. 20:273–97
Frequently Asked QuestionsQ: What is the prediction methodology for XPO stock?
A: XPO stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Sign Test
Q: Is XPO stock a buy or sell?
A: The dominant strategy among neural network is to Sell XPO Stock.
Q: Is XPO Logistics stock a good investment?
A: The consensus rating for XPO Logistics is Sell and assigned short-term B1 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of XPO stock?
A: The consensus rating for XPO is Sell.
Q: What is the prediction period for XPO stock?
A: The prediction period for XPO is (n+4 weeks)