Modelling A.I. in Economics

BMBL Bumble Inc. Class A Common Stock

Bumble Inc. Class A Common Stock Research Report

Summary

Nowadays, the stock market's prediction is a topic that attracted researchers in the world. Stock market prediction is a process that requires a comprehensive understanding of the data stock movement and analysis it accurately. Therefore, it needs intelligent methods to deal with this task to ensure that the prediction is as correct as possible, which will return profitable benefits to investors. The main goal of this article is the employment of effective machine learning techniques to build a strong model for stock market prediction. We evaluate Bumble Inc. Class A Common Stock prediction models with Deductive Inference (ML) and ElasticNet Regression1,2,3,4 and conclude that the BMBL 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 Buy BMBL stock.

Key Points

  1. How useful are statistical predictions?
  2. What are the most successful trading algorithms?
  3. Is now good time to invest?

BMBL Target Price Prediction Modeling Methodology

We consider Bumble Inc. Class A Common Stock Stock Decision Process with Deductive Inference (ML) where A is the set of discrete actions of BMBL 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(ElasticNet 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+4 weeks) i = 1 n r i

n:Time series to forecast

p:Price signals of BMBL stock

j:Nash equilibria (Neural Network)

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?

BMBL Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: BMBL Bumble Inc. Class A Common Stock
Time series to forecast n: 28 Nov 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Buy BMBL 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%

Adjusted IFRS* Prediction Methods for Bumble Inc. Class A Common Stock

  1. A layer component that includes a prepayment option is not eligible to be designated as a hedged item in a fair value hedge if the prepayment option's fair value is affected by changes in the hedged risk, unless the designated layer includes the effect of the related prepayment option when determining the change in the fair value of the hedged item.
  2. To the extent that a transfer of a financial asset does not qualify for derecognition, the transferor's contractual rights or obligations related to the transfer are not accounted for separately as derivatives if recognising both the derivative and either the transferred asset or the liability arising from the transfer would result in recognising the same rights or obligations twice. For example, a call option retained by the transferor may prevent a transfer of financial assets from being accounted for as a sale. In that case, the call option is not separately recognised as a derivative asset.
  3. Conversely, if the critical terms of the hedging instrument and the hedged item are not closely aligned, there is an increased level of uncertainty about the extent of offset. Consequently, the hedge effectiveness during the term of the hedging relationship is more difficult to predict. In such a situation it might only be possible for an entity to conclude on the basis of a quantitative assessment that an economic relationship exists between the hedged item and the hedging instrument (see paragraphs B6.4.4–B6.4.6). In some situations a quantitative assessment might also be needed to assess whether the hedge ratio used for designating the hedging relationship meets the hedge effectiveness requirements (see paragraphs B6.4.9–B6.4.11). An entity can use the same or different methods for those two different purposes.
  4. The assessment of whether an economic relationship exists includes an analysis of the possible behaviour of the hedging relationship during its term to ascertain whether it can be expected to meet the risk management objective. The mere existence of a statistical correlation between two variables does not, by itself, support a valid conclusion that an economic relationship exists.

*International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

Conclusions

Bumble Inc. Class A Common Stock assigned short-term B2 & long-term B2 forecasted stock rating. We evaluate the prediction models Deductive Inference (ML) with ElasticNet Regression1,2,3,4 and conclude that the BMBL 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 Buy BMBL stock.

Financial State Forecast for BMBL Bumble Inc. Class A Common Stock Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B2
Operational Risk 3233
Market Risk4268
Technical Analysis6461
Fundamental Analysis6244
Risk Unsystematic7466

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 641 signals.

References

  1. Imbens G, Wooldridge J. 2009. Recent developments in the econometrics of program evaluation. J. Econ. Lit. 47:5–86
  2. Abadir, K. M., K. Hadri E. Tzavalis (1999), "The influence of VAR dimensions on estimator biases," Econometrica, 67, 163–181.
  3. S. Bhatnagar, R. Sutton, M. Ghavamzadeh, and M. Lee. Natural actor-critic algorithms. Automatica, 45(11): 2471–2482, 2009
  4. Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
  5. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
  6. Hartford J, Lewis G, Taddy M. 2016. Counterfactual prediction with deep instrumental variables networks. arXiv:1612.09596 [stat.AP]
  7. Greene WH. 2000. Econometric Analysis. Upper Saddle River, N J: Prentice Hall. 4th ed.
Frequently Asked QuestionsQ: What is the prediction methodology for BMBL stock?
A: BMBL stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and ElasticNet Regression
Q: Is BMBL stock a buy or sell?
A: The dominant strategy among neural network is to Buy BMBL Stock.
Q: Is Bumble Inc. Class A Common Stock stock a good investment?
A: The consensus rating for Bumble Inc. Class A Common Stock is Buy and assigned short-term B2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of BMBL stock?
A: The consensus rating for BMBL is Buy.
Q: What is the prediction period for BMBL stock?
A: The prediction period for BMBL is (n+4 weeks)

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