Modelling A.I. in Economics

How do you determine buy or sell? (TJX Stock Forecast)

Investors raise profit from stock market by maximising gains and minimising loses. The profit is difficult to raise because of the volatile nature of stock market prices. Predictive modelling allows investors to make informed decisions. We evaluate TJX Companies prediction models with Modular Neural Network (News Feed Sentiment Analysis) and Spearman Correlation1,2,3,4 and conclude that the TJX 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 TJX stock.


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

Key Points

  1. What are the most successful trading algorithms?
  2. What are main components of Markov decision process?
  3. What is neural prediction?

TJX Target Price Prediction Modeling Methodology

Stock index price prediction is prevalent in both academic and economic fields. The index price is hard to forecast due to its uncertain noise. With the development of computer science, neural networks are applied in kinds of industrial fields. In this paper, we introduce four different methods in machine learning including three typical machine learning models: Multilayer Perceptron (MLP), Long Short Term Memory (LSTM) and Convolutional Neural Network (CNN) and one attention-based neural network. We consider TJX Companies Stock Decision Process with Spearman Correlation where A is the set of discrete actions of TJX 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 (News Feed Sentiment Analysis)) X S(n):→ (n+8 weeks) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of TJX 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?

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

Sample Set: Neural Network
Stock/Index: TJX TJX Companies
Time series to forecast n: 08 Oct 2022 for (n+8 weeks)

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

TJX Companies assigned short-term B2 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) with Spearman Correlation1,2,3,4 and conclude that the TJX 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 TJX stock.

Financial State Forecast for TJX Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B2
Operational Risk 5249
Market Risk6653
Technical Analysis6586
Fundamental Analysis6049
Risk Unsystematic4330

Prediction Confidence Score

Trust metric by Neural Network: 75 out of 100 with 657 signals.

References

  1. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  2. Abadie A, Cattaneo MD. 2018. Econometric methods for program evaluation. Annu. Rev. Econ. 10:465–503
  3. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
  4. Canova, F. B. E. Hansen (1995), "Are seasonal patterns constant over time? A test for seasonal stability," Journal of Business and Economic Statistics, 13, 237–252.
  5. K. Tumer and D. Wolpert. A survey of collectives. In K. Tumer and D. Wolpert, editors, Collectives and the Design of Complex Systems, pages 1–42. Springer, 2004.
  6. S. J. Russell and P. Norvig. Artificial Intelligence: A Modern Approach. Prentice Hall, Englewood Cliffs, NJ, 3nd edition, 2010
  7. Imai K, Ratkovic M. 2013. Estimating treatment effect heterogeneity in randomized program evaluation. Ann. Appl. Stat. 7:443–70
Frequently Asked QuestionsQ: What is the prediction methodology for TJX stock?
A: TJX stock prediction methodology: We evaluate the prediction models Modular Neural Network (News Feed Sentiment Analysis) and Spearman Correlation
Q: Is TJX stock a buy or sell?
A: The dominant strategy among neural network is to Hold TJX Stock.
Q: Is TJX Companies stock a good investment?
A: The consensus rating for TJX Companies is Hold and assigned short-term B2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of TJX stock?
A: The consensus rating for TJX is Hold.
Q: What is the prediction period for TJX stock?
A: The prediction period for TJX is (n+8 weeks)

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