Modelling A.I. in Economics

Does algo trading work? (LON:RQIH Stock Forecast)

Prediction of stock market is a long-time attractive topic to researchers from different fields. In particular, numerous studies have been conducted to predict the movement of stock market using machine learning algorithms such as support vector machine (SVM) and reinforcement learning. In this project, we propose a new prediction algorithm that exploits the temporal correlation among global stock markets and various financial products to predict the next-day stock trend. We evaluate R&Q INSURANCE HOLDINGS LTD prediction models with Modular Neural Network (Social Media Sentiment Analysis) and Spearman Correlation1,2,3,4 and conclude that the LON:RQIH 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 Hold LON:RQIH stock.


Keywords: LON:RQIH, R&Q INSURANCE HOLDINGS LTD, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. How useful are statistical predictions?
  2. What are main components of Markov decision process?
  3. What are the most successful trading algorithms?

LON:RQIH Target Price Prediction Modeling Methodology

Stock price prediction has always been a challenging task for the researchers in financial domain. While the Efficient Market Hypothesis claims that it is impossible to predict stock prices accurately, there are work in the literature that have demonstrated that stock price movements can be forecasted with a reasonable degree of accuracy, if appropriate variables are chosen and suitable predictive models are built using those variables. In this work, we present a robust and accurate framework of stock price prediction using statistical, machine learning and deep learning methods We consider R&Q INSURANCE HOLDINGS LTD Stock Decision Process with Spearman Correlation where A is the set of discrete actions of LON:RQIH 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(Spearman Correlation)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 (Social Media Sentiment Analysis)) X S(n):→ (n+8 weeks) r s rs

n:Time series to forecast

p:Price signals of LON:RQIH 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:RQIH Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:RQIH R&Q INSURANCE HOLDINGS LTD
Time series to forecast n: 05 Oct 2022 for (n+8 weeks)

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

R&Q INSURANCE HOLDINGS LTD assigned short-term B3 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Social Media Sentiment Analysis) with Spearman Correlation1,2,3,4 and conclude that the LON:RQIH 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 Hold LON:RQIH stock.

Financial State Forecast for LON:RQIH Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3Ba3
Operational Risk 3376
Market Risk3887
Technical Analysis7249
Fundamental Analysis6552
Risk Unsystematic4853

Prediction Confidence Score

Trust metric by Neural Network: 82 out of 100 with 474 signals.

References

  1. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  2. Mnih A, Teh YW. 2012. A fast and simple algorithm for training neural probabilistic language models. In Proceedings of the 29th International Conference on Machine Learning, pp. 419–26. La Jolla, CA: Int. Mach. Learn. Soc.
  3. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
  4. Bickel P, Klaassen C, Ritov Y, Wellner J. 1998. Efficient and Adaptive Estimation for Semiparametric Models. Berlin: Springer
  5. D. Bertsekas. Dynamic programming and optimal control. Athena Scientific, 1995.
  6. Cheung, Y. M.D. Chinn (1997), "Further investigation of the uncertain unit root in GNP," Journal of Business and Economic Statistics, 15, 68–73.
  7. C. Szepesvári. Algorithms for Reinforcement Learning. Synthesis Lectures on Artificial Intelligence and Machine Learning. Morgan & Claypool Publishers, 2010
Frequently Asked QuestionsQ: What is the prediction methodology for LON:RQIH stock?
A: LON:RQIH stock prediction methodology: We evaluate the prediction models Modular Neural Network (Social Media Sentiment Analysis) and Spearman Correlation
Q: Is LON:RQIH stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:RQIH Stock.
Q: Is R&Q INSURANCE HOLDINGS LTD stock a good investment?
A: The consensus rating for R&Q INSURANCE HOLDINGS LTD is Hold and assigned short-term B3 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:RQIH stock?
A: The consensus rating for LON:RQIH is Hold.
Q: What is the prediction period for LON:RQIH stock?
A: The prediction period for LON:RQIH is (n+8 weeks)

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