## Summary

This paper proposes genetic algorithms (GAs) approach to feature discretization and the determination of connection weights for artificial neural networks (ANNs) to predict the stock price index. Previous research proposed many hybrid models of ANN and GA for the method of training the network, feature subset selection, and topology optimization.** We evaluate Viomi Technology Co. Ltd American Depositary Shares prediction models with Modular Neural Network (Market Direction Analysis) and Sign Test ^{1,2,3,4} and conclude that the VIOT 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 Hold VIOT stock.**

## Key Points

- Reaction Function
- What are buy sell or hold recommendations?
- Trading Signals

## VIOT Target Price Prediction Modeling Methodology

We consider Viomi Technology Co. Ltd American Depositary Shares Stock Decision Process with Modular Neural Network (Market Direction Analysis) where A is the set of discrete actions of VIOT 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(Sign Test)

^{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 Direction Analysis)) X S(n):→ (n+4 weeks) $\sum _{i=1}^{n}\left({r}_{i}\right)$

n:Time series to forecast

p:Price signals of VIOT 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?

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

**Sample Set:**Neural Network

**Stock/Index:**VIOT Viomi Technology Co. Ltd American Depositary Shares

**Time series to forecast n: 29 Nov 2022**for (n+4 weeks)

**According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold VIOT 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 Viomi Technology Co. Ltd American Depositary Shares

- Paragraphs 6.9.7–6.9.13 provide exceptions to the requirements specified in those paragraphs only. An entity shall apply all other hedge accounting requirements in this Standard, including the qualifying criteria in paragraph 6.4.1, to hedging relationships that were directly affected by interest rate benchmark reform.
- A regular way purchase or sale gives rise to a fixed price commitment between trade date and settlement date that meets the definition of a derivative. However, because of the short duration of the commitment it is not recognised as a derivative financial instrument. Instead, this Standard provides for special accounting for such regular way contracts (see paragraphs 3.1.2 and B3.1.3–B3.1.6).
- IFRS 7 defines credit risk as 'the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation'. The requirement in paragraph 5.7.7(a) relates to the risk that the issuer will fail to perform on that particular liability. It does not necessarily relate to the creditworthiness of the issuer. For example, if an entity issues a collateralised liability and a non-collateralised liability that are otherwise identical, the credit risk of those two liabilities will be different, even though they are issued by the same entity. The credit risk on the collateralised liability will be less than the credit risk of the non-collateralised liability. The credit risk for a collateralised liability may be close to zero.
- Fluctuation around a constant hedge ratio (and hence the related hedge ineffectiveness) cannot be reduced by adjusting the hedge ratio in response to each particular outcome. Hence, in such circumstances, the change in the extent of offset is a matter of measuring and recognising hedge ineffectiveness but does not require rebalancing.

*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

Viomi Technology Co. Ltd American Depositary Shares assigned short-term B1 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Modular Neural Network (Market Direction Analysis) with Sign Test ^{1,2,3,4} and conclude that the VIOT 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 Hold VIOT stock.**

### Financial State Forecast for VIOT Viomi Technology Co. Ltd American Depositary Shares Stock Options & Futures

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

Outlook* | B1 | Ba3 |

Operational Risk | 81 | 74 |

Market Risk | 37 | 52 |

Technical Analysis | 66 | 68 |

Fundamental Analysis | 37 | 82 |

Risk Unsystematic | 71 | 40 |

### Prediction Confidence Score

## References

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- Chen, C. L. Liu (1993), "Joint estimation of model parameters and outlier effects in time series," Journal of the American Statistical Association, 88, 284–297.
- Chernozhukov V, Newey W, Robins J. 2018c. Double/de-biased machine learning using regularized Riesz representers. arXiv:1802.08667 [stat.ML]
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- A. Tamar and S. Mannor. Variance adjusted actor critic algorithms. arXiv preprint arXiv:1310.3697, 2013.
- Hoerl AE, Kennard RW. 1970. Ridge regression: biased estimation for nonorthogonal problems. Technometrics 12:55–67

## Frequently Asked Questions

Q: What is the prediction methodology for VIOT stock?A: VIOT stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Sign Test

Q: Is VIOT stock a buy or sell?

A: The dominant strategy among neural network is to Hold VIOT Stock.

Q: Is Viomi Technology Co. Ltd American Depositary Shares stock a good investment?

A: The consensus rating for Viomi Technology Co. Ltd American Depositary Shares is Hold and assigned short-term B1 & long-term Ba3 forecasted stock rating.

Q: What is the consensus rating of VIOT stock?

A: The consensus rating for VIOT is Hold.

Q: What is the prediction period for VIOT stock?

A: The prediction period for VIOT is (n+4 weeks)