Modelling A.I. in Economics

Can neural networks predict stock market? (LON:MGAM Stock Forecast)

Stock market prediction is a crucial and challenging task due to its nonlinear, evolutionary, complex, and dynamic nature. Research on the stock market has been an important issue for researchers in recent years. Companies invest in trading the stock market. Predicting the stock market trend accurately will minimize the risk and bring a maximum amount of profit for all the stakeholders. During the last several years, a lot of studies have been done to predict stock market trends using Traditional, Machine learning and deep learning techniques. We evaluate MORGAN ADVANCED MATERIALS PLC prediction models with Supervised Machine Learning (ML) and ElasticNet Regression1,2,3,4 and conclude that the LON:MGAM stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Sell LON:MGAM stock.


Keywords: LON:MGAM, MORGAN ADVANCED MATERIALS PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. Should I buy stocks now or wait amid such uncertainty?
  2. Trust metric by Neural Network
  3. What are the most successful trading algorithms?

LON:MGAM Target Price Prediction Modeling Methodology

Prediction of stock market movement is extremely difficult due to its high mutable nature. The rapid ups and downs occur in stock market because of impact from foreign commodities like emotional behavior of investors, political, psychological and economical factors. Continuous unsettlement in the stock market is major reason why investors sell out at the wrong time and often fail to gain the benefit. While investing in stock market investors must not forget the risk of reward rule and expose their holdings to greater risks. Although it is not possible predict stock market movement with full accuracy, losses from selling stocks at wrong time and its impacts can be reduce to greater extent using prediction of stock market movement based on analysis of historical data. We consider MORGAN ADVANCED MATERIALS PLC Stock Decision Process with ElasticNet Regression where A is the set of discrete actions of LON:MGAM 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(ElasticNet Regression)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(Supervised Machine Learning (ML)) X S(n):→ (n+16 weeks) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:MGAM 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?

LON:MGAM Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: LON:MGAM MORGAN ADVANCED MATERIALS PLC
Time series to forecast n: 11 Oct 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Sell LON:MGAM 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

MORGAN ADVANCED MATERIALS PLC assigned short-term Ba1 & long-term B2 forecasted stock rating. We evaluate the prediction models Supervised Machine Learning (ML) with ElasticNet Regression1,2,3,4 and conclude that the LON:MGAM stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Sell LON:MGAM stock.

Financial State Forecast for LON:MGAM Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba1B2
Operational Risk 8537
Market Risk7982
Technical Analysis6953
Fundamental Analysis5034
Risk Unsystematic7257

Prediction Confidence Score

Trust metric by Neural Network: 86 out of 100 with 754 signals.

References

  1. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
  2. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008
  3. Scholkopf B, Smola AJ. 2001. Learning with Kernels: Support Vector Machines, Regularization, Optimization, and Beyond. Cambridge, MA: MIT Press
  4. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
  5. Hastie T, Tibshirani R, Friedman J. 2009. The Elements of Statistical Learning. Berlin: Springer
  6. T. Morimura, M. Sugiyama, M. Kashima, H. Hachiya, and T. Tanaka. Nonparametric return distribution ap- proximation for reinforcement learning. In Proceedings of the 27th International Conference on Machine Learning, pages 799–806, 2010
  7. Bessler, D. A. R. A. Babula, (1987), "Forecasting wheat exports: Do exchange rates matter?" Journal of Business and Economic Statistics, 5, 397–406.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:MGAM stock?
A: LON:MGAM stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and ElasticNet Regression
Q: Is LON:MGAM stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:MGAM Stock.
Q: Is MORGAN ADVANCED MATERIALS PLC stock a good investment?
A: The consensus rating for MORGAN ADVANCED MATERIALS PLC is Sell and assigned short-term Ba1 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of LON:MGAM stock?
A: The consensus rating for LON:MGAM is Sell.
Q: What is the prediction period for LON:MGAM stock?
A: The prediction period for LON:MGAM is (n+16 weeks)

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