Modelling A.I. in Economics

Is LON:SMV Stock Expected to Go Up? (Stock Forecast)

How to predict stock price movements based on quantitative market data modeling is an attractive topic. In front of the market news and stock prices that are commonly believed as two important market data sources, how to extract and exploit the hidden information within the raw data and make both accurate and fast predictions simultaneously becomes a challenging problem. In this paper, we present the design and architecture of our trading signal mining platform that employs extreme learning machine (ELM) to make stock price prediction based on those two data sources concurrently. We evaluate SMOOVE PLC prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Pearson Correlation1,2,3,4 and conclude that the LON:SMV 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 LON:SMV stock.


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

Key Points

  1. Prediction Modeling
  2. What is statistical models in machine learning?
  3. Understanding Buy, Sell, and Hold Ratings

LON:SMV Target Price Prediction Modeling Methodology

In this paper, we propose a robust and novel hybrid model for prediction of stock returns. The proposed model is constituted of two linear models: autoregressive moving average model, exponential smoothing model and a non-linear model: recurrent neural network. Training data for recurrent neural network is generated by a new regression model. Recurrent neural network produces satisfactory predictions as compared to linear models. With the goal to further improve the accuracy of predictions, the proposed hybrid prediction model merges predictions obtained from these three prediction based models. We consider SMOOVE PLC Stock Decision Process with Pearson Correlation where A is the set of discrete actions of LON:SMV 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(Pearson 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 (Emotional Trigger/Responses Analysis)) X S(n):→ (n+8 weeks) i = 1 n r i

n:Time series to forecast

p:Price signals of LON:SMV 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:SMV Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:SMV SMOOVE PLC
Time series to forecast n: 10 Oct 2022 for (n+8 weeks)

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

SMOOVE PLC assigned short-term B3 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Pearson Correlation1,2,3,4 and conclude that the LON:SMV 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 LON:SMV stock.

Financial State Forecast for LON:SMV Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3B1
Operational Risk 7971
Market Risk4949
Technical Analysis3653
Fundamental Analysis3873
Risk Unsystematic5257

Prediction Confidence Score

Trust metric by Neural Network: 89 out of 100 with 839 signals.

References

  1. Breusch, T. S. A. R. Pagan (1979), "A simple test for heteroskedasticity and random coefficient variation," Econometrica, 47, 1287–1294.
  2. Efron B, Hastie T. 2016. Computer Age Statistical Inference, Vol. 5. Cambridge, UK: Cambridge Univ. Press
  3. M. Ono, M. Pavone, Y. Kuwata, and J. Balaram. Chance-constrained dynamic programming with application to risk-aware robotic space exploration. Autonomous Robots, 39(4):555–571, 2015
  4. J. Spall. Multivariate stochastic approximation using a simultaneous perturbation gradient approximation. IEEE Transactions on Automatic Control, 37(3):332–341, 1992.
  5. Chamberlain G. 2000. Econometrics and decision theory. J. Econom. 95:255–83
  6. Chipman HA, George EI, McCulloch RE. 2010. Bart: Bayesian additive regression trees. Ann. Appl. Stat. 4:266–98
  7. Ashley, R. (1983), "On the usefulness of macroeconomic forecasts as inputs to forecasting models," Journal of Forecasting, 2, 211–223.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:SMV stock?
A: LON:SMV stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Pearson Correlation
Q: Is LON:SMV stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:SMV Stock.
Q: Is SMOOVE PLC stock a good investment?
A: The consensus rating for SMOOVE PLC is Hold and assigned short-term B3 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of LON:SMV stock?
A: The consensus rating for LON:SMV is Hold.
Q: What is the prediction period for LON:SMV stock?
A: The prediction period for LON:SMV is (n+8 weeks)

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