Recently, there has been a surge of interest in the use of machine learning to help aid in the accurate predictions of financial markets. Despite the exciting advances in this cross-section of finance and AI, many of the current approaches are limited to using technical analysis to capture historical trends of each stock price and thus limited to certain experimental setups to obtain good prediction results. On the other hand, professional investors additionally use their rich knowledge of inter-market and inter-company relations to map the connectivity of companies and events, and use this map to make better market predictions. For instance, they would predict the movement of a certain company's stock price based not only on its former stock price trends but also on the performance of its suppliers or customers, the overall industry, macroeconomic factors and trade policies. This paper investigates the effectiveness of work at the intersection of market predictions and graph neural networks, which hold the potential to mimic the ways in which investors make decisions by incorporating company knowledge graphs directly into the predictive model. We evaluate Marathon Petroleum prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Sign Test1,2,3,4 and conclude that the MPC 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 Hold MPC stock.
Keywords: MPC, Marathon Petroleum, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.
Key Points
- Should I buy stocks now or wait amid such uncertainty?
- What are the most successful trading algorithms?
- How do you know when a stock will go up or down?
MPC Target Price Prediction Modeling Methodology
The classical linear multi-factor stock selection model is widely used for long-term stock price trend prediction. However, the stock market is chaotic, complex, and dynamic, for which reasons the linear model assumption may be unreasonable, and it is more meaningful to construct a better-integrated stock selection model based on different feature selection and nonlinear stock price trend prediction methods. We consider Marathon Petroleum Stock Decision Process with Sign Test where A is the set of discrete actions of MPC 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= X R(Modular Neural Network (News Feed Sentiment Analysis)) X S(n):→ (n+4 weeks)
n:Time series to forecast
p:Price signals of MPC 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?
MPC Stock Forecast (Buy or Sell) for (n+4 weeks)
Sample Set: Neural NetworkStock/Index: MPC Marathon Petroleum
Time series to forecast n: 15 Oct 2022 for (n+4 weeks)
According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold MPC 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
Marathon Petroleum assigned short-term Ba3 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Sign Test1,2,3,4 and conclude that the MPC 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 Hold MPC stock.
Financial State Forecast for MPC Stock Options & Futures
| Rating | Short-Term | Long-Term Senior |
|---|---|---|
| Outlook* | Ba3 | B1 |
| Operational Risk | 35 | 58 |
| Market Risk | 61 | 40 |
| Technical Analysis | 89 | 77 |
| Fundamental Analysis | 68 | 65 |
| Risk Unsystematic | 71 | 37 |
Prediction Confidence Score
References
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- Abadie A, Diamond A, Hainmueller J. 2015. Comparative politics and the synthetic control method. Am. J. Political Sci. 59:495–510
- Firth JR. 1957. A synopsis of linguistic theory 1930–1955. In Studies in Linguistic Analysis (Special Volume of the Philological Society), ed. JR Firth, pp. 1–32. Oxford, UK: Blackwell
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Frequently Asked Questions
Q: What is the prediction methodology for MPC stock?A: MPC stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Sign Test
Q: Is MPC stock a buy or sell?
A: The dominant strategy among neural network is to Hold MPC Stock.
Q: Is Marathon Petroleum stock a good investment?
A: The consensus rating for Marathon Petroleum is Hold and assigned short-term Ba3 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of MPC stock?
A: The consensus rating for MPC is Hold.
Q: What is the prediction period for MPC stock?
A: The prediction period for MPC is (n+4 weeks)