Modelling A.I. in Economics

Should I Buy Stocks Now or Wait Amid Such Uncertainty? (ABNB Stock Prediction)

Three networks are compared for low false alarm stock trend predictions. Short-term trends, particularly attractive for neural network analysis, can be used profitably in scenarios such as option trading, but only with significant risk. Therefore, we focus on limiting false alarms, which improves the risk/reward ratio by preventing losses. To predict stock trends, we exploit time delay, recurrent, and probabilistic neural networks (TDNN, RNN, and PNN, respectively), utilizing conjugate gradient and multistream extended Kalman filter training for TDNN and RNN. We evaluate Airbnb prediction models with Transfer Learning (ML) and Independent T-Test1,2,3,4 and conclude that the ABNB stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy ABNB stock.


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

Key Points

  1. Can stock prices be predicted?
  2. Is now good time to invest?
  3. How accurate is machine learning in stock market?

ABNB 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 Airbnb Stock Decision Process with Independent T-Test where A is the set of discrete actions of ABNB 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(Independent T-Test)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(Transfer Learning (ML)) X S(n):→ (n+1 year) i = 1 n r i

n:Time series to forecast

p:Price signals of ABNB 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?

ABNB Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: ABNB Airbnb
Time series to forecast n: 07 Oct 2022 for (n+1 year)

According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy ABNB 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

Airbnb assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Transfer Learning (ML) with Independent T-Test1,2,3,4 and conclude that the ABNB stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy ABNB stock.

Financial State Forecast for ABNB Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Operational Risk 6490
Market Risk4833
Technical Analysis4162
Fundamental Analysis3780
Risk Unsystematic8059

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 706 signals.

References

  1. V. Borkar. A sensitivity formula for the risk-sensitive cost and the actor-critic algorithm. Systems & Control Letters, 44:339–346, 2001
  2. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
  3. Barkan O. 2016. Bayesian neural word embedding. arXiv:1603.06571 [math.ST]
  4. V. Borkar. Stochastic approximation: a dynamical systems viewpoint. Cambridge University Press, 2008
  5. M. L. Littman. Friend-or-foe q-learning in general-sum games. In Proceedings of the Eighteenth International Conference on Machine Learning (ICML 2001), Williams College, Williamstown, MA, USA, June 28 - July 1, 2001, pages 322–328, 2001
  6. Ashley, R. (1983), "On the usefulness of macroeconomic forecasts as inputs to forecasting models," Journal of Forecasting, 2, 211–223.
  7. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
Frequently Asked QuestionsQ: What is the prediction methodology for ABNB stock?
A: ABNB stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Independent T-Test
Q: Is ABNB stock a buy or sell?
A: The dominant strategy among neural network is to Buy ABNB Stock.
Q: Is Airbnb stock a good investment?
A: The consensus rating for Airbnb is Buy and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of ABNB stock?
A: The consensus rating for ABNB is Buy.
Q: What is the prediction period for ABNB stock?
A: The prediction period for ABNB is (n+1 year)

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