Modelling A.I. in Economics

Should You Buy Taiwan Weighted Index Right Now? (Stock Forecast)

Stock price prediction has always been a challenging task for the researchers in financial domain. While the Efficient Market Hypothesis claims that it is impossible to predict stock prices accurately, there are work in the literature that have demonstrated that stock price movements can be forecasted with a reasonable degree of accuracy, if appropriate variables are chosen and suitable predictive models are built using those variables. In this work, we present a robust and accurate framework of stock price prediction using statistical, machine learning and deep learning methods We evaluate Taiwan Weighted Index prediction models with Ensemble Learning (ML) and Multiple Regression1,2,3,4 and conclude that the Taiwan Weighted Index 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 Sell Taiwan Weighted Index stock.


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

Key Points

  1. Short/Long Term Stocks
  2. Can we predict stock market using machine learning?
  3. Market Signals

Taiwan Weighted Index Target Price Prediction Modeling Methodology

Market systems are so complex that they overwhelm the ability of any individual to predict. But it is crucial for the investors to predict stock market price to generate notable profit. We have taken into factors such as Commodity Prices (crude oil, gold, silver), Market History, and Foreign exchange rate (FEX) that influence the stock trend. We consider Taiwan Weighted Index Stock Decision Process with Multiple Regression where A is the set of discrete actions of Taiwan Weighted Index 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(Multiple 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(Ensemble Learning (ML)) X S(n):→ (n+16 weeks) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of Taiwan Weighted Index 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?

Taiwan Weighted Index Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: Taiwan Weighted Index Taiwan Weighted Index
Time series to forecast n: 21 Oct 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Sell Taiwan Weighted Index 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

Taiwan Weighted Index assigned short-term Ba3 & long-term B1 forecasted stock rating. We evaluate the prediction models Ensemble Learning (ML) with Multiple Regression1,2,3,4 and conclude that the Taiwan Weighted Index 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 Sell Taiwan Weighted Index stock.

Financial State Forecast for Taiwan Weighted Index Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3B1
Operational Risk 8863
Market Risk8661
Technical Analysis5067
Fundamental Analysis5630
Risk Unsystematic5467

Prediction Confidence Score

Trust metric by Neural Network: 73 out of 100 with 550 signals.

References

  1. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  2. Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35
  3. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008
  4. Dietterich TG. 2000. Ensemble methods in machine learning. In Multiple Classifier Systems: First International Workshop, Cagliari, Italy, June 21–23, pp. 1–15. Berlin: Springer
  5. Athey S, Imbens GW. 2017a. The econometrics of randomized experiments. In Handbook of Economic Field Experiments, Vol. 1, ed. E Duflo, A Banerjee, pp. 73–140. Amsterdam: Elsevier
  6. Athey S, Imbens G. 2016. Recursive partitioning for heterogeneous causal effects. PNAS 113:7353–60
  7. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008
Frequently Asked QuestionsQ: What is the prediction methodology for Taiwan Weighted Index stock?
A: Taiwan Weighted Index stock prediction methodology: We evaluate the prediction models Ensemble Learning (ML) and Multiple Regression
Q: Is Taiwan Weighted Index stock a buy or sell?
A: The dominant strategy among neural network is to Sell Taiwan Weighted Index Stock.
Q: Is Taiwan Weighted Index stock a good investment?
A: The consensus rating for Taiwan Weighted Index is Sell and assigned short-term Ba3 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of Taiwan Weighted Index stock?
A: The consensus rating for Taiwan Weighted Index is Sell.
Q: What is the prediction period for Taiwan Weighted Index stock?
A: The prediction period for Taiwan Weighted Index is (n+16 weeks)

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