Modelling A.I. in Economics

Trading Signals (LON:BLV Stock Forecast)

We present an Artificial Neural Network (ANN) approach to predict stock market indices, particularly with respect to the forecast of their trend movements up or down. Exploiting different Neural Networks architectures, we provide numerical analysis of concrete financial time series. In particular, after a brief r ́esum ́e of the existing literature on the subject, we consider the Multi-layer Perceptron (MLP), the Convolutional Neural Net- works (CNN), and the Long Short-Term Memory (LSTM) recurrent neural networks techniques. We evaluate BELVOIR GROUP PLC prediction models with Modular Neural Network (Financial Sentiment Analysis) and Paired T-Test1,2,3,4 and conclude that the LON:BLV stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell LON:BLV stock.


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

Key Points

  1. Which neural network is best for prediction?
  2. Which neural network is best for prediction?
  3. Can statistics predict the future?

LON:BLV Target Price Prediction Modeling Methodology

Nowadays, people show more and more enthusiasm for applying machine learning methods to finance domain. Many scholars and investors are trying to discover the mystery behind the stock market by applying deep learning. This thesis compares four machine learning methods: long short-term memory (LSTM), gated recurrent units (GRU), support vector machine (SVM), and eXtreme gradient boosting (XGBoost) to test which one performs the best in predicting the stock trend. We consider BELVOIR GROUP PLC Stock Decision Process with Paired T-Test where A is the set of discrete actions of LON:BLV 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(Paired 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(Modular Neural Network (Financial Sentiment Analysis)) X S(n):→ (n+4 weeks) e x rx

n:Time series to forecast

p:Price signals of LON:BLV 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:BLV Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: LON:BLV BELVOIR GROUP PLC
Time series to forecast n: 16 Oct 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell LON:BLV 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

BELVOIR GROUP PLC assigned short-term B1 & long-term B3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) with Paired T-Test1,2,3,4 and conclude that the LON:BLV stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Sell LON:BLV stock.

Financial State Forecast for LON:BLV Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B3
Operational Risk 5858
Market Risk3236
Technical Analysis7840
Fundamental Analysis6961
Risk Unsystematic7446

Prediction Confidence Score

Trust metric by Neural Network: 93 out of 100 with 515 signals.

References

  1. S. Proper and K. Tumer. Modeling difference rewards for multiagent learning (extended abstract). In Proceedings of the Eleventh International Joint Conference on Autonomous Agents and Multiagent Systems, Valencia, Spain, June 2012
  2. H. Kushner and G. Yin. Stochastic approximation algorithms and applications. Springer, 1997.
  3. R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
  4. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  5. Hirano K, Porter JR. 2009. Asymptotics for statistical treatment rules. Econometrica 77:1683–701
  6. J. Baxter and P. Bartlett. Infinite-horizon policy-gradient estimation. Journal of Artificial Intelligence Re- search, 15:319–350, 2001.
  7. Schapire RE, Freund Y. 2012. Boosting: Foundations and Algorithms. Cambridge, MA: MIT Press
Frequently Asked QuestionsQ: What is the prediction methodology for LON:BLV stock?
A: LON:BLV stock prediction methodology: We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) and Paired T-Test
Q: Is LON:BLV stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:BLV Stock.
Q: Is BELVOIR GROUP PLC stock a good investment?
A: The consensus rating for BELVOIR GROUP PLC is Sell and assigned short-term B1 & long-term B3 forecasted stock rating.
Q: What is the consensus rating of LON:BLV stock?
A: The consensus rating for LON:BLV is Sell.
Q: What is the prediction period for LON:BLV stock?
A: The prediction period for LON:BLV is (n+4 weeks)

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