OTIS Target Price Prediction

This paper studies the possibilities of making prediction of stock market prices using historical data and machine learning algorithms. We evaluate Otis prediction models with Modular Neural Network (Market Volatility Analysis) and Factor1,2,3,4 and conclude that the OTIS stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy OTIS stock.


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

Key Points

  1. What are main components of Markov decision process?
  2. How do you pick a stock?
  3. What is Markov decision process in reinforcement learning?

OTIS Target Price Prediction Modeling Methodology

Recently, numerous investigations for stock price prediction and portfolio management using machine learning have been trying to develop efficient mechanical trading systems. But these systems have a limitation in that they are mainly based on the supervised learning which is not so adequate for learning problems with long-term goals and delayed rewards. This paper proposes a method of applying reinforcement learning, suitable for modeling and learning various kinds of interactions in real situations, to the problem of stock price prediction. We consider Otis Stock Decision Process with Factor where A is the set of discrete actions of OTIS 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(Factor)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 (Market Volatility Analysis)) X S(n):→ (n+6 month) e x rx

n:Time series to forecast

p:Price signals of OTIS 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?

OTIS Stock Forecast (Buy or Sell) for (n+6 month)


Sample Set: Neural Network
Stock/Index: OTIS Otis
Time series to forecast n: 12 Nov 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy OTIS 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 Otis

  1. Rebalancing refers to the adjustments made to the designated quantities of the hedged item or the hedging instrument of an already existing hedging relationship for the purpose of maintaining a hedge ratio that complies with the hedge effectiveness requirements. Changes to designated quantities of a hedged item or of a hedging instrument for a different purpose do not constitute rebalancing for the purpose of this Standard
  2. If, at the date of initial application, it is impracticable (as defined in IAS 8) for an entity to assess a modified time value of money element in accordance with paragraphs B4.1.9B–B4.1.9D on the basis of the facts and circumstances that existed at the initial recognition of the financial asset, an entity shall assess the contractual cash flow characteristics of that financial asset on the basis of the facts and circumstances that existed at the initial recognition of the financial asset without taking into account the requirements related to the modification of the time value of money element in paragraphs B4.1.9B–B4.1.9D. (See also paragraph 42R of IFRS 7.)
  3. For example, when the critical terms (such as the nominal amount, maturity and underlying) of the hedging instrument and the hedged item match or are closely aligned, it might be possible for an entity to conclude on the basis of a qualitative assessment of those critical terms that the hedging instrument and the hedged item have values that will generally move in the opposite direction because of the same risk and hence that an economic relationship exists between the hedged item and the hedging instrument (see paragraphs B6.4.4–B6.4.6).
  4. The following are examples of when the objective of the entity's business model may be achieved by both collecting contractual cash flows and selling financial assets. This list of examples is not exhaustive. Furthermore, the examples are not intended to describe all the factors that may be relevant to the assessment of the entity's business model nor specify the relative importance of the factors.

*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

Otis assigned short-term B2 & long-term B3 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) with Factor1,2,3,4 and conclude that the OTIS stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy OTIS stock.

Financial State Forecast for OTIS Otis Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B3
Operational Risk 4467
Market Risk6939
Technical Analysis5736
Fundamental Analysis6636
Risk Unsystematic4450

Prediction Confidence Score

Trust metric by Neural Network: 93 out of 100 with 582 signals.

References

  1. H. Kushner and G. Yin. Stochastic approximation algorithms and applications. Springer, 1997.
  2. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
  3. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
  4. Abadie A, Cattaneo MD. 2018. Econometric methods for program evaluation. Annu. Rev. Econ. 10:465–503
  5. Thompson WR. 1933. On the likelihood that one unknown probability exceeds another in view of the evidence of two samples. Biometrika 25:285–94
  6. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  7. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
Frequently Asked QuestionsQ: What is the prediction methodology for OTIS stock?
A: OTIS stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) and Factor
Q: Is OTIS stock a buy or sell?
A: The dominant strategy among neural network is to Buy OTIS Stock.
Q: Is Otis stock a good investment?
A: The consensus rating for Otis is Buy and assigned short-term B2 & long-term B3 forecasted stock rating.
Q: What is the consensus rating of OTIS stock?
A: The consensus rating for OTIS is Buy.
Q: What is the prediction period for OTIS stock?
A: The prediction period for OTIS is (n+6 month)

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