Modelling A.I. in Economics

Is LON:BPT Stock Buy or Sell? (Stock Forecast)

Prediction of stock market is a long-time attractive topic to researchers from different fields. In particular, numerous studies have been conducted to predict the movement of stock market using machine learning algorithms such as support vector machine (SVM) and reinforcement learning. In this project, we propose a new prediction algorithm that exploits the temporal correlation among global stock markets and various financial products to predict the next-day stock trend. We evaluate BRIDGEPOINT GROUP PLC prediction models with Reinforcement Machine Learning (ML) and Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:BPT 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:BPT stock.


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

Key Points

  1. Market Signals
  2. Why do we need predictive models?
  3. What are the most successful trading algorithms?

LON:BPT Target Price Prediction Modeling Methodology

Stock market is considered chaotic, complex, volatile and dynamic. Undoubtedly, its prediction is one of the most challenging tasks in time series forecasting. Moreover existing Artificial Neural Network (ANN) approaches fail to provide encouraging results. Meanwhile advances in machine learning have presented favourable results for speech recognition, image classification and language processing. We consider BRIDGEPOINT GROUP PLC Stock Decision Process with Statistical Hypothesis Testing where A is the set of discrete actions of LON:BPT 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(Statistical Hypothesis Testing)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(Reinforcement Machine Learning (ML)) X S(n):→ (n+3 month) R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

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

Sample Set: Neural Network
Stock/Index: LON:BPT BRIDGEPOINT 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:BPT 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

BRIDGEPOINT GROUP PLC assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Reinforcement Machine Learning (ML) with Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:BPT 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:BPT stock.

Financial State Forecast for LON:BPT Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Operational Risk 3773
Market Risk5744
Technical Analysis3770
Fundamental Analysis8464
Risk Unsystematic7363

Prediction Confidence Score

Trust metric by Neural Network: 79 out of 100 with 480 signals.

References

  1. Mikolov T, Chen K, Corrado GS, Dean J. 2013a. Efficient estimation of word representations in vector space. arXiv:1301.3781 [cs.CL]
  2. S. Bhatnagar. An actor-critic algorithm with function approximation for discounted cost constrained Markov decision processes. Systems & Control Letters, 59(12):760–766, 2010
  3. Chen, C. L. Liu (1993), "Joint estimation of model parameters and outlier effects in time series," Journal of the American Statistical Association, 88, 284–297.
  4. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40
  5. Athey S, Imbens G. 2016. Recursive partitioning for heterogeneous causal effects. PNAS 113:7353–60
  6. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  7. Clements, M. P. D. F. Hendry (1995), "Forecasting in cointegrated systems," Journal of Applied Econometrics, 10, 127–146.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:BPT stock?
A: LON:BPT stock prediction methodology: We evaluate the prediction models Reinforcement Machine Learning (ML) and Statistical Hypothesis Testing
Q: Is LON:BPT stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:BPT Stock.
Q: Is BRIDGEPOINT GROUP PLC stock a good investment?
A: The consensus rating for BRIDGEPOINT GROUP PLC is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:BPT stock?
A: The consensus rating for LON:BPT is Hold.
Q: What is the prediction period for LON:BPT stock?
A: The prediction period for LON:BPT is (n+3 month)

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