## Summary

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 evaluate Taiwan Weighted Index prediction models with Modular Neural Network (Market News Sentiment Analysis) and Multiple Regression ^{1,2,3,4} and conclude that the Taiwan Weighted Index stock is predictable in the short/long term. **

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold Taiwan Weighted Index stock.**

## Key Points

- What are the most successful trading algorithms?
- Prediction Modeling
- Technical Analysis with Algorithmic Trading

## Taiwan Weighted Index Target Price Prediction Modeling Methodology

We consider Taiwan Weighted Index Stock Decision Process with Modular Neural Network (Market News Sentiment Analysis) 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}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (Market News Sentiment Analysis)) X S(n):→ (n+8 weeks) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of Taiwan Weighted Index 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?

## Taiwan Weighted Index Stock Forecast (Buy or Sell) for (n+8 weeks)

**Sample Set:**Neural Network

**Stock/Index:**Taiwan Weighted Index Taiwan Weighted Index

**Time series to forecast n: 22 Nov 2022**for (n+8 weeks)

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold 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%**

## Adjusted IFRS* Prediction Methods for Taiwan Weighted Index

- If a component of the cash flows of a financial or a non-financial item is designated as the hedged item, that component must be less than or equal to the total cash flows of the entire item. However, all of the cash flows of the entire item may be designated as the hedged item and hedged for only one particular risk (for example, only for those changes that are attributable to changes in LIBOR or a benchmark commodity price).
- An embedded prepayment option in an interest-only or principal-only strip is closely related to the host contract provided the host contract (i) initially resulted from separating the right to receive contractual cash flows of a financial instrument that, in and of itself, did not contain an embedded derivative, and (ii) does not contain any terms not present in the original host debt contract.
- For the purpose of applying the requirements in paragraphs 6.4.1(c)(i) and B6.4.4–B6.4.6, an entity shall assume that the interest rate benchmark on which the hedged cash flows and/or the hedged risk (contractually or noncontractually specified) are based, or the interest rate benchmark on which the cash flows of the hedging instrument are based, is not altered as a result of interest rate benchmark reform.
- Credit risk analysis is a multifactor and holistic analysis; whether a specific factor is relevant, and its weight compared to other factors, will depend on the type of product, characteristics of the financial instruments and the borrower as well as the geographical region. An entity shall consider reasonable and supportable information that is available without undue cost or effort and that is relevant for the particular financial instrument being assessed. However, some factors or indicators may not be identifiable on an individual financial instrument level. In such a case, the factors or indicators should be assessed for appropriate portfolios, groups of portfolios or portions of a portfolio of financial instruments to determine whether the requirement in paragraph 5.5.3 for the recognition of lifetime expected credit losses has been met.

*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

Taiwan Weighted Index assigned short-term B2 & long-term B1 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) with Multiple Regression ^{1,2,3,4} and conclude that the Taiwan Weighted Index stock is predictable in the short/long term.**

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold Taiwan Weighted Index stock.**

### Financial State Forecast for Taiwan Weighted Index Taiwan Weighted Index Stock Options & Futures

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

Outlook* | B2 | B1 |

Operational Risk | 31 | 76 |

Market Risk | 74 | 33 |

Technical Analysis | 53 | 65 |

Fundamental Analysis | 67 | 89 |

Risk Unsystematic | 43 | 33 |

### Prediction Confidence Score

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## Frequently Asked Questions

Q: What is the prediction methodology for Taiwan Weighted Index stock?A: Taiwan Weighted Index stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market News Sentiment Analysis) and Multiple Regression

Q: Is Taiwan Weighted Index stock a buy or sell?

A: The dominant strategy among neural network is to Hold Taiwan Weighted Index Stock.

Q: Is Taiwan Weighted Index stock a good investment?

A: The consensus rating for Taiwan Weighted Index is Hold and assigned short-term B2 & 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 Hold.

Q: What is the prediction period for Taiwan Weighted Index stock?

A: The prediction period for Taiwan Weighted Index is (n+8 weeks)