Modelling A.I. in Economics

Is BLD a Buy?

In this paper we investigate ways to use prior knowledge and neural networks to improve multivariate prediction ability. Daily stock prices are predicted as a complicated real-world problem, taking non-numerical factors such as political and international events are into account. We have studied types of prior knowledge which are difficult to insert into initial network structures or to represent in the form of error measurements. We evaluate TopBuild Corp. prediction models with Multi-Instance Learning (ML) and Factor1,2,3,4 and conclude that the BLD 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 BLD stock.


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

Key Points

  1. Stock Rating
  2. Technical Analysis with Algorithmic Trading
  3. How do you decide buy or sell a stock?

BLD Target Price Prediction Modeling Methodology

This paper proposes genetic algorithms (GAs) approach to feature discretization and the determination of connection weights for artificial neural networks (ANNs) to predict the stock price index. Previous research proposed many hybrid models of ANN and GA for the method of training the network, feature subset selection, and topology optimization. We consider TopBuild Corp. Stock Decision Process with Factor where A is the set of discrete actions of BLD 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(Factor)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(Multi-Instance Learning (ML)) X S(n):→ (n+8 weeks) i = 1 n a i

n:Time series to forecast

p:Price signals of BLD 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?

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

Sample Set: Neural Network
Stock/Index: BLD TopBuild Corp.
Time series to forecast n: 06 Oct 2022 for (n+8 weeks)

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

TopBuild Corp. assigned short-term B3 & long-term B2 forecasted stock rating. We evaluate the prediction models Multi-Instance Learning (ML) with Factor1,2,3,4 and conclude that the BLD 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 BLD stock.

Financial State Forecast for BLD Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3B2
Operational Risk 3774
Market Risk7939
Technical Analysis4244
Fundamental Analysis4477
Risk Unsystematic3330

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 814 signals.

References

  1. Li L, Chu W, Langford J, Moon T, Wang X. 2012. An unbiased offline evaluation of contextual bandit algo- rithms with generalized linear models. In Proceedings of 4th ACM International Conference on Web Search and Data Mining, pp. 297–306. New York: ACM
  2. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
  3. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  4. Hastie T, Tibshirani R, Wainwright M. 2015. Statistical Learning with Sparsity: The Lasso and Generalizations. New York: CRC Press
  5. M. J. Hausknecht. Cooperation and Communication in Multiagent Deep Reinforcement Learning. PhD thesis, The University of Texas at Austin, 2016
  6. D. Bertsekas. Nonlinear programming. Athena Scientific, 1999.
  7. LeCun Y, Bengio Y, Hinton G. 2015. Deep learning. Nature 521:436–44
Frequently Asked QuestionsQ: What is the prediction methodology for BLD stock?
A: BLD stock prediction methodology: We evaluate the prediction models Multi-Instance Learning (ML) and Factor
Q: Is BLD stock a buy or sell?
A: The dominant strategy among neural network is to Hold BLD Stock.
Q: Is TopBuild Corp. stock a good investment?
A: The consensus rating for TopBuild Corp. is Hold and assigned short-term B3 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of BLD stock?
A: The consensus rating for BLD is Hold.
Q: What is the prediction period for BLD stock?
A: The prediction period for BLD is (n+8 weeks)

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