Can stock prices be predicted? (WEC Stock Forecast)

The stock market is an interesting industry to study. There are various variations present in it. Many experts have been studying and researching on the various trends that the stock market goes through. One of the major studies has been the attempt to predict the stock prices of various companies based on historical data. Prediction of stock prices will greatly help people to understand where and how to invest so that the risk of losing money is minimized. We evaluate WEC Energy Group prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Linear Regression^1,2,3,4 and conclude that the WEC 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 Sell WEC stock.

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

Key Points

1. Trust metric by Neural Network
2. Market Outlook
3. Investment Risk

WEC Target Price Prediction Modeling Methodology

Short-term trading is a difficult task due to fluctuating demand and supply in the stock market. These demands and supply are reflected in stock prices. The stock prices may be predicted using technical indicators. Most of the existing literature considered the limited technical indicators to measure short-term prices. We have considered 82 different combinations of technical indicators to predict the stock prices. We consider WEC Energy Group Stock Decision Process with Linear Regression where A is the set of discrete actions of WEC 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(Linear Regression)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Modular Neural Network (News Feed Sentiment Analysis)) X S(n):→ (n+8 weeks) $\overrightarrow{S}=\left(s_1,s_2,s_3\right)$

n:Time series to forecast

p:Price signals of WEC 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?

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

Sample Set: Neural Network
Stock/Index: WEC WEC Energy Group
Time series to forecast n: 20 Oct 2022 for (n+8 weeks)

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

WEC Energy Group assigned short-term B1 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Linear Regression^1,2,3,4 and conclude that the WEC 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 Sell WEC stock.

Financial State Forecast for WEC Stock Options & Futures

Rating	Short-Term	Long-Term Senior
Outlook*	B1	Ba3
Operational Risk	65	86
Market Risk	45	68
Technical Analysis	41	40
Fundamental Analysis	72	52
Risk Unsystematic	73	78

Prediction Confidence Score

Trust metric by Neural Network: 79 out of 100 with 675 signals.

References

1. A. Y. Ng, D. Harada, and S. J. Russell. Policy invariance under reward transformations: Theory and application to reward shaping. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 278–287, 1999.
2. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
3. Bewley, R. M. Yang (1998), "On the size and power of system tests for cointegration," Review of Economics and Statistics, 80, 675–679.
4. Brailsford, T.J. R.W. Faff (1996), "An evaluation of volatility forecasting techniques," Journal of Banking Finance, 20, 419–438.
5. Knox SW. 2018. Machine Learning: A Concise Introduction. Hoboken, NJ: Wiley
6. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
7. Bottou L. 2012. Stochastic gradient descent tricks. In Neural Networks: Tricks of the Trade, ed. G Montavon, G Orr, K-R Müller, pp. 421–36. Berlin: Springer

Frequently Asked Questions

Q: What is the prediction methodology for WEC stock?
A: WEC stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Linear Regression
Q: Is WEC stock a buy or sell?
A: The dominant strategy among neural network is to Sell WEC Stock.
Q: Is WEC Energy Group stock a good investment?
A: The consensus rating for WEC Energy Group is Sell and assigned short-term B1 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of WEC stock?
A: The consensus rating for WEC is Sell.
Q: What is the prediction period for WEC stock?
A: The prediction period for WEC is (n+8 weeks)

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