How accurate is machine learning in stock market? (LON:TPK Stock Forecast)

Stock price forecasting is a popular and important topic in financial and academic studies. Share market is an volatile place for predicting since there are no significant rules to estimate or predict the price of a share in the share market. Many methods like technical analysis, fundamental analysis, time series analysis and statistical analysis etc. are used to predict the price in tie share market but none of these methods are proved as a consistently acceptable prediction tool. In this paper, we implemented a Random Forest approach to predict stock market prices. We evaluate TRAVIS PERKINS PLC prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Paired T-Test^1,2,3,4 and conclude that the LON:TPK 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:TPK stock.

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

Key Points

1. What is Markov decision process in reinforcement learning?
2. What is a prediction confidence?
3. Which neural network is best for prediction?

LON:TPK Target Price Prediction Modeling Methodology

Recurrent Neural Networks (RNNs) is a sub type of neural networks that use feedback connections. Several types of RNN models are used in predicting financial time series. This study was conducted to develop models to predict daily stock prices based on Recurrent Neural Network (RNN) Approach and to measure the accuracy of the models developed and identify the shortcomings of the models if present. We consider TRAVIS PERKINS PLC Stock Decision Process with Paired T-Test where A is the set of discrete actions of LON:TPK 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(Paired T-Test)^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 (Emotional Trigger/Responses Analysis)) X S(n):→ (n+16 weeks) $\begin{array}{l}\int r^s\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of LON:TPK 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:TPK Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: LON:TPK TRAVIS PERKINS PLC
Time series to forecast n: 20 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:TPK 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

TRAVIS PERKINS PLC assigned short-term B3 & long-term Ba2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Paired T-Test^1,2,3,4 and conclude that the LON:TPK 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:TPK stock.

Financial State Forecast for LON:TPK Stock Options & Futures

Rating	Short-Term	Long-Term Senior
Outlook*	B3	Ba2
Operational Risk	54	84
Market Risk	35	87
Technical Analysis	77	85
Fundamental Analysis	50	52
Risk Unsystematic	39	38

Prediction Confidence Score

Trust metric by Neural Network: 86 out of 100 with 677 signals.

References

1. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
2. D. S. Bernstein, S. Zilberstein, and N. Immerman. The complexity of decentralized control of Markov Decision Processes. In UAI '00: Proceedings of the 16th Conference in Uncertainty in Artificial Intelligence, Stanford University, Stanford, California, USA, June 30 - July 3, 2000, pages 32–37, 2000.
3. P. Milgrom and I. Segal. Envelope theorems for arbitrary choice sets. Econometrica, 70(2):583–601, 2002
4. G. J. Laurent, L. Matignon, and N. L. Fort-Piat. The world of independent learners is not Markovian. Int. J. Know.-Based Intell. Eng. Syst., 15(1):55–64, 2011
5. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
6. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
7. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier

Frequently Asked Questions

Q: What is the prediction methodology for LON:TPK stock?
A: LON:TPK stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Paired T-Test
Q: Is LON:TPK stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:TPK Stock.
Q: Is TRAVIS PERKINS PLC stock a good investment?
A: The consensus rating for TRAVIS PERKINS PLC is Sell and assigned short-term B3 & long-term Ba2 forecasted stock rating.
Q: What is the consensus rating of LON:TPK stock?
A: The consensus rating for LON:TPK is Sell.
Q: What is the prediction period for LON:TPK stock?
A: The prediction period for LON:TPK is (n+16 weeks)

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