Accurate prediction of stock market returns is a very challenging task due to volatile and non-linear nature of the financial stock markets. With the introduction of artificial intelligence and increased computational capabilities, programmed methods of prediction have proved to be more efficient in predicting stock prices. We evaluate Analog Devices prediction models with Multi-Task Learning (ML) and Multiple Regression1,2,3,4 and conclude that the ADI 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 ADI stock.
Keywords: ADI, Analog Devices, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.
Key Points
- Trading Interaction
- What is neural prediction?
- What is neural prediction?
ADI Target Price Prediction Modeling Methodology
Stock prediction with data mining techniques is one of the most important issues in finance being investigated by researchers across the globe. Data mining techniques can be used extensively in the financial markets to help investors make qualitative decision. One of the techniques is artificial neural network (ANN). However, in the application of ANN for predicting the financial market the use of technical analysis variables for stock prediction is predominant. In this paper, we present a hybridized approach which combines the use of the variables of technical and fundamental analysis of stock market indicators for prediction of future price of stock in order to improve on the existing approaches. We consider Analog Devices Stock Decision Process with Multiple Regression where A is the set of discrete actions of ADI 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(Multiple Regression)5,6,7= X R(Multi-Task Learning (ML)) X S(n):→ (n+3 month)
n:Time series to forecast
p:Price signals of ADI 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?
ADI Stock Forecast (Buy or Sell) for (n+3 month)
Sample Set: Neural NetworkStock/Index: ADI Analog Devices
Time series to forecast n: 06 Oct 2022 for (n+3 month)
According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Hold ADI 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
Analog Devices assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Multi-Task Learning (ML) with Multiple Regression1,2,3,4 and conclude that the ADI 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 ADI stock.
Financial State Forecast for ADI Stock Options & Futures
| Rating | Short-Term | Long-Term Senior |
|---|---|---|
| Outlook* | B2 | Ba3 |
| Operational Risk | 86 | 72 |
| Market Risk | 32 | 66 |
| Technical Analysis | 40 | 69 |
| Fundamental Analysis | 81 | 77 |
| Risk Unsystematic | 36 | 32 |
Prediction Confidence Score
References
- Dudik M, Langford J, Li L. 2011. Doubly robust policy evaluation and learning. In Proceedings of the 28th International Conference on Machine Learning, pp. 1097–104. La Jolla, CA: Int. Mach. Learn. Soc.
- Hoerl AE, Kennard RW. 1970. Ridge regression: biased estimation for nonorthogonal problems. Technometrics 12:55–67
- Zeileis A, Hothorn T, Hornik K. 2008. Model-based recursive partitioning. J. Comput. Graph. Stat. 17:492–514 Zhou Z, Athey S, Wager S. 2018. Offline multi-action policy learning: generalization and optimization. arXiv:1810.04778 [stat.ML]
- T. Morimura, M. Sugiyama, M. Kashima, H. Hachiya, and T. Tanaka. Nonparametric return distribution ap- proximation for reinforcement learning. In Proceedings of the 27th International Conference on Machine Learning, pages 799–806, 2010
- V. Mnih, K. Kavukcuoglu, D. Silver, A. Rusu, J. Veness, M. Bellemare, A. Graves, M. Riedmiller, A. Fidjeland, G. Ostrovski, S. Petersen, C. Beattie, A. Sadik, I. Antonoglou, H. King, D. Kumaran, D. Wierstra, S. Legg, and D. Hassabis. Human-level control through deep reinforcement learning. Nature, 518(7540):529–533, 02 2015.
- Babula, R. A. (1988), "Contemporaneous correlation and modeling Canada's imports of U.S. crops," Journal of Agricultural Economics Research, 41, 33–38.
- Wager S, Athey S. 2017. Estimation and inference of heterogeneous treatment effects using random forests. J. Am. Stat. Assoc. 113:1228–42
Frequently Asked Questions
Q: What is the prediction methodology for ADI stock?A: ADI stock prediction methodology: We evaluate the prediction models Multi-Task Learning (ML) and Multiple Regression
Q: Is ADI stock a buy or sell?
A: The dominant strategy among neural network is to Hold ADI Stock.
Q: Is Analog Devices stock a good investment?
A: The consensus rating for Analog Devices is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of ADI stock?
A: The consensus rating for ADI is Hold.
Q: What is the prediction period for ADI stock?
A: The prediction period for ADI is (n+3 month)
- Live broadcast of expert trader insights
- Real-time stock market analysis
- Access to a library of research dataset (API,XLS,JSON)
- Real-time updates
- In-depth research reports (PDF)