## Summary

The presented paper modeled and predicted stock returns using LSTM. The historical data of stock market were transformed into 30-days-long sequences with 10 learning features and 7-day earning rate labeling. The model was fitted by training on 1200000 sequences and tested using the other 350000 sequences. ** We evaluate Dada Nexus Limited American Depositary Shares prediction models with Transductive Learning (ML) and Polynomial Regression ^{1,2,3,4} and conclude that the DADA 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 DADA stock.**

## Key Points

- What is a prediction confidence?
- Operational Risk
- Can stock prices be predicted?

## DADA Target Price Prediction Modeling Methodology

We consider Dada Nexus Limited American Depositary Shares Stock Decision Process with Transductive Learning (ML) where A is the set of discrete actions of DADA 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(Polynomial Regression)

^{5,6,7}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Transductive Learning (ML)) X S(n):→ (n+1 year) $\overrightarrow{S}=\left({s}_{1},{s}_{2},{s}_{3}\right)$

n:Time series to forecast

p:Price signals of DADA 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?

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

**Sample Set:**Neural Network

**Stock/Index:**DADA Dada Nexus Limited American Depositary Shares

**Time series to forecast n: 26 Nov 2022**for (n+1 year)

**According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Buy DADA 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 Dada Nexus Limited American Depositary Shares

- The accounting for the time value of options in accordance with paragraph 6.5.15 applies only to the extent that the time value relates to the hedged item (aligned time value). The time value of an option relates to the hedged item if the critical terms of the option (such as the nominal amount, life and underlying) are aligned with the hedged item. Hence, if the critical terms of the option and the hedged item are not fully aligned, an entity shall determine the aligned time value, ie how much of the time value included in the premium (actual time value) relates to the hedged item (and therefore should be treated in accordance with paragraph 6.5.15). An entity determines the aligned time value using the valuation of the option that would have critical terms that perfectly match the hedged item.
- An entity is not required to restate prior periods to reflect the application of these amendments. The entity may restate prior periods only if it is possible to do so without the use of hindsight. If an entity restates prior periods, the restated financial statements must reflect all the requirements in this Standard for the affected financial instruments. If an entity does not restate prior periods, the entity shall recognise any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application of these amendments in the opening retained earnings (or other component of equity, as appropriate) of the annual reporting period that includes the date of initial application of these amendments.
- The purpose of estimating expected credit losses is neither to estimate a worstcase scenario nor to estimate the best-case scenario. Instead, an estimate of expected credit losses shall always reflect the possibility that a credit loss occurs and the possibility that no credit loss occurs even if the most likely outcome is no credit loss.
- An entity shall assess at the inception of the hedging relationship, and on an ongoing basis, whether a hedging relationship meets the hedge effectiveness requirements. At a minimum, an entity shall perform the ongoing assessment at each reporting date or upon a significant change in the circumstances affecting the hedge effectiveness requirements, whichever comes first. The assessment relates to expectations about hedge effectiveness and is therefore only forward-looking.

*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

Dada Nexus Limited American Depositary Shares assigned short-term B2 & long-term Baa2 forecasted stock rating.** We evaluate the prediction models Transductive Learning (ML) with Polynomial Regression ^{1,2,3,4} and conclude that the DADA 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 DADA stock.**

### Financial State Forecast for DADA Dada Nexus Limited American Depositary Shares Stock Options & Futures

Rating | Short-Term | Long-Term Senior |
---|---|---|

Outlook* | B2 | Baa2 |

Operational Risk | 36 | 54 |

Market Risk | 42 | 62 |

Technical Analysis | 63 | 83 |

Fundamental Analysis | 80 | 84 |

Risk Unsystematic | 48 | 81 |

### Prediction Confidence Score

## References

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## Frequently Asked Questions

Q: What is the prediction methodology for DADA stock?A: DADA stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Polynomial Regression

Q: Is DADA stock a buy or sell?

A: The dominant strategy among neural network is to Buy DADA Stock.

Q: Is Dada Nexus Limited American Depositary Shares stock a good investment?

A: The consensus rating for Dada Nexus Limited American Depositary Shares is Buy and assigned short-term B2 & long-term Baa2 forecasted stock rating.

Q: What is the consensus rating of DADA stock?

A: The consensus rating for DADA is Buy.

Q: What is the prediction period for DADA stock?

A: The prediction period for DADA is (n+1 year)