Modelling A.I. in Economics

How do you decide buy or sell a stock? (LON:KBT Stock Forecast)

Stock markets are affected by many uncertainties and interrelated economic and political factors at both local and global levels. The key to successful stock market forecasting is achieving best results with minimum required input data. To determine the set of relevant factors for making accurate predictions is a complicated task and so regular stock market analysis is very essential. More specifically, the stock market's movements are analyzed and predicted in order to retrieve knowledge that could guide investors on when to buy and sell. We evaluate K3 BUSINESS TECHNOLOGY GROUP PLC prediction models with Ensemble Learning (ML) and Logistic Regression1,2,3,4 and conclude that the LON:KBT stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold LON:KBT stock.


Keywords: LON:KBT, K3 BUSINESS TECHNOLOGY GROUP PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. What are buy sell or hold recommendations?
  2. Can statistics predict the future?
  3. Market Signals

LON:KBT Target Price Prediction Modeling Methodology

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 consider K3 BUSINESS TECHNOLOGY GROUP PLC Stock Decision Process with Logistic Regression where A is the set of discrete actions of LON:KBT 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(Logistic 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(Ensemble Learning (ML)) X S(n):→ (n+3 month) i = 1 n s i

n:Time series to forecast

p:Price signals of LON:KBT 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:KBT Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: LON:KBT K3 BUSINESS TECHNOLOGY GROUP PLC
Time series to forecast n: 19 Oct 2022 for (n+3 month)

According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold LON:KBT 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

K3 BUSINESS TECHNOLOGY GROUP PLC assigned short-term Ba1 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Ensemble Learning (ML) with Logistic Regression1,2,3,4 and conclude that the LON:KBT stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold LON:KBT stock.

Financial State Forecast for LON:KBT Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba3
Operational Risk 7767
Market Risk7972
Technical Analysis8269
Fundamental Analysis3284
Risk Unsystematic8133

Prediction Confidence Score

Trust metric by Neural Network: 90 out of 100 with 662 signals.

References

  1. Babula, R. A. (1988), "Contemporaneous correlation and modeling Canada's imports of U.S. crops," Journal of Agricultural Economics Research, 41, 33–38.
  2. Belloni A, Chernozhukov V, Hansen C. 2014. High-dimensional methods and inference on structural and treatment effects. J. Econ. Perspect. 28:29–50
  3. R. Sutton and A. Barto. Reinforcement Learning. The MIT Press, 1998
  4. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
  5. J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
  6. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008
  7. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40
Frequently Asked QuestionsQ: What is the prediction methodology for LON:KBT stock?
A: LON:KBT stock prediction methodology: We evaluate the prediction models Ensemble Learning (ML) and Logistic Regression
Q: Is LON:KBT stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:KBT Stock.
Q: Is K3 BUSINESS TECHNOLOGY GROUP PLC stock a good investment?
A: The consensus rating for K3 BUSINESS TECHNOLOGY GROUP PLC is Hold and assigned short-term Ba1 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:KBT stock?
A: The consensus rating for LON:KBT is Hold.
Q: What is the prediction period for LON:KBT stock?
A: The prediction period for LON:KBT is (n+3 month)

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