Modelling A.I. in Economics

Can stock prices be predicted? (LON:EVE Stock Forecast)

Stock market is considered chaotic, complex, volatile and dynamic. Undoubtedly, its prediction is one of the most challenging tasks in time series forecasting. Moreover existing Artificial Neural Network (ANN) approaches fail to provide encouraging results. Meanwhile advances in machine learning have presented favourable results for speech recognition, image classification and language processing. We evaluate EVE SLEEP PLC prediction models with Modular Neural Network (CNN Layer) and Polynomial Regression1,2,3,4 and conclude that the LON:EVE 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 LON:EVE stock.


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

Key Points

  1. Can neural networks predict stock market?
  2. Can machine learning predict?
  3. Why do we need predictive models?

LON:EVE Target Price Prediction Modeling Methodology

Several intelligent data mining approaches, including neural networks, have been widely employed by academics during the last decade. In today's rapidly evolving economy, stock market data prediction and analysis play a significant role. Several non-linear models like neural network, generalized autoregressive conditional heteroskedasticity (GARCH) and autoregressive conditional heteroscedasticity (ARCH) as well as linear models like Auto- Regressive Integrated Moving Average (ARIMA), Moving Average (MA) and Auto Regressive (AR) may be used for stock forecasting. We consider EVE SLEEP PLC Stock Decision Process with Polynomial Regression where A is the set of discrete actions of LON:EVE 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(Polynomial 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(Modular Neural Network (CNN Layer)) X S(n):→ (n+1 year) i = 1 n s i

n:Time series to forecast

p:Price signals of LON:EVE 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:EVE Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: LON:EVE EVE SLEEP PLC
Time series to forecast n: 09 Oct 2022 for (n+1 year)

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

EVE SLEEP PLC assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (CNN Layer) with Polynomial Regression1,2,3,4 and conclude that the LON:EVE 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 LON:EVE stock.

Financial State Forecast for LON:EVE Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Operational Risk 6849
Market Risk6958
Technical Analysis4379
Fundamental Analysis5567
Risk Unsystematic5464

Prediction Confidence Score

Trust metric by Neural Network: 72 out of 100 with 877 signals.

References

  1. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  2. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  3. R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
  4. Angrist JD, Pischke JS. 2008. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton, NJ: Princeton Univ. Press
  5. S. Bhatnagar, R. Sutton, M. Ghavamzadeh, and M. Lee. Natural actor-critic algorithms. Automatica, 45(11): 2471–2482, 2009
  6. C. Szepesvári. Algorithms for Reinforcement Learning. Synthesis Lectures on Artificial Intelligence and Machine Learning. Morgan & Claypool Publishers, 2010
  7. Athey S, Wager S. 2017. Efficient policy learning. arXiv:1702.02896 [math.ST]
Frequently Asked QuestionsQ: What is the prediction methodology for LON:EVE stock?
A: LON:EVE stock prediction methodology: We evaluate the prediction models Modular Neural Network (CNN Layer) and Polynomial Regression
Q: Is LON:EVE stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:EVE Stock.
Q: Is EVE SLEEP PLC stock a good investment?
A: The consensus rating for EVE SLEEP PLC is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:EVE stock?
A: The consensus rating for LON:EVE is Hold.
Q: What is the prediction period for LON:EVE stock?
A: The prediction period for LON:EVE is (n+1 year)

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