Modelling A.I. in Economics

Is RWE.DE a Buy? (Forecast)

With the advent of technological marvels like global digitization, the prediction of the stock market has entered a technologically advanced era, revamping the old model of trading. With the ceaseless increase in market capitalization, stock trading has become a center of investment for many financial investors. Many analysts and researchers have developed tools and techniques that predict stock price movements and help investors in proper decision-making. We evaluate RWE prediction models with Deductive Inference (ML) and Linear Regression1,2,3,4 and conclude that the RWE.DE stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold RWE.DE stock.


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

Key Points

  1. How useful are statistical predictions?
  2. How do you know when a stock will go up or down?
  3. Can we predict stock market using machine learning?

RWE.DE Target Price Prediction Modeling Methodology

One decision in Stock Market can make huge impact on an investor's life. The stock market is a complex system and often covered in mystery, it is therefore, very difficult to analyze all the impacting factors before making a decision. In this research, we have tried to design a stock market prediction model which is based on different factors. We consider RWE Stock Decision Process with Linear Regression where A is the set of discrete actions of RWE.DE 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(Linear Regression)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(Deductive Inference (ML)) X S(n):→ (n+16 weeks) i = 1 n s i

n:Time series to forecast

p:Price signals of RWE.DE 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?

RWE.DE Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: RWE.DE RWE
Time series to forecast n: 20 Oct 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold RWE.DE 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

RWE assigned short-term Ba2 & long-term B2 forecasted stock rating. We evaluate the prediction models Deductive Inference (ML) with Linear Regression1,2,3,4 and conclude that the RWE.DE stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Hold RWE.DE stock.

Financial State Forecast for RWE.DE Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba2B2
Operational Risk 8246
Market Risk8940
Technical Analysis4641
Fundamental Analysis5751
Risk Unsystematic7379

Prediction Confidence Score

Trust metric by Neural Network: 77 out of 100 with 746 signals.

References

  1. S. Devlin, L. Yliniemi, D. Kudenko, and K. Tumer. Potential-based difference rewards for multiagent reinforcement learning. In Proceedings of the Thirteenth International Joint Conference on Autonomous Agents and Multiagent Systems, May 2014
  2. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  3. Firth JR. 1957. A synopsis of linguistic theory 1930–1955. In Studies in Linguistic Analysis (Special Volume of the Philological Society), ed. JR Firth, pp. 1–32. Oxford, UK: Blackwell
  4. Hirano K, Porter JR. 2009. Asymptotics for statistical treatment rules. Econometrica 77:1683–701
  5. Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, et al. 2016a. Double machine learning for treatment and causal parameters. Tech. Rep., Cent. Microdata Methods Pract., Inst. Fiscal Stud., London
  6. Hartigan JA, Wong MA. 1979. Algorithm as 136: a k-means clustering algorithm. J. R. Stat. Soc. Ser. C 28:100–8
  7. 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.
Frequently Asked QuestionsQ: What is the prediction methodology for RWE.DE stock?
A: RWE.DE stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Linear Regression
Q: Is RWE.DE stock a buy or sell?
A: The dominant strategy among neural network is to Hold RWE.DE Stock.
Q: Is RWE stock a good investment?
A: The consensus rating for RWE is Hold and assigned short-term Ba2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of RWE.DE stock?
A: The consensus rating for RWE.DE is Hold.
Q: What is the prediction period for RWE.DE stock?
A: The prediction period for RWE.DE is (n+16 weeks)

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