Modelling A.I. in Economics

When to Sell and When to Hold LON:ONT Stock

OXFORD NANOPORE TECHNOLOGIES PLC Research Report

Summary

The categorization of high dimensional data present a fascinating challenge to machine learning models as frequent number of highly correlated dimensions or attributes can affect the accuracy of classification model. In this paper, the problem of high dimensionality of stock exchange is investigated to predict the market trends by applying the principal component analysis (PCA) with linear regression. PCA can help to improve the predictive performance of machine learning methods while reducing the redundancy among the data. We evaluate OXFORD NANOPORE TECHNOLOGIES PLC prediction models with Modular Neural Network (Market Volatility Analysis) and Independent T-Test1,2,3,4 and conclude that the LON:ONT 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 Buy LON:ONT stock.

Key Points

  1. How do predictive algorithms actually work?
  2. What is prediction in deep learning?
  3. Market Signals

LON:ONT Target Price Prediction Modeling Methodology

We consider OXFORD NANOPORE TECHNOLOGIES PLC Stock Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of LON:ONT 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(Independent T-Test)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+8 weeks) S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of LON:ONT 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?

LON:ONT Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: LON:ONT OXFORD NANOPORE TECHNOLOGIES PLC
Time series to forecast n: 18 Nov 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy LON:ONT 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 OXFORD NANOPORE TECHNOLOGIES PLC

  1. In addition to those hedging relationships specified in paragraph 6.9.1, an entity shall apply the requirements in paragraphs 6.9.11 and 6.9.12 to new hedging relationships in which an alternative benchmark rate is designated as a non-contractually specified risk component (see paragraphs 6.3.7(a) and B6.3.8) when, because of interest rate benchmark reform, that risk component is not separately identifiable at the date it is designated.
  2. Paragraph 4.1.1(a) requires an entity to classify financial assets on the basis of the entity's business model for managing the financial assets, unless paragraph 4.1.5 applies. An entity assesses whether its financial assets meet the condition in paragraph 4.1.2(a) or the condition in paragraph 4.1.2A(a) on the basis of the business model as determined by the entity's key management personnel (as defined in IAS 24 Related Party Disclosures).
  3. Hedge effectiveness is the extent to which changes in the fair value or the cash flows of the hedging instrument offset changes in the fair value or the cash flows of the hedged item (for example, when the hedged item is a risk component, the relevant change in fair value or cash flows of an item is the one that is attributable to the hedged risk). Hedge ineffectiveness is the extent to which the changes in the fair value or the cash flows of the hedging instrument are greater or less than those on the hedged item.
  4. Subject to the conditions in paragraphs 4.1.5 and 4.2.2, this Standard allows an entity to designate a financial asset, a financial liability, or a group of financial instruments (financial assets, financial liabilities or both) as at fair value through profit or loss provided that doing so results in more relevant information.

*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

OXFORD NANOPORE TECHNOLOGIES PLC assigned short-term B2 & long-term Caa1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) with Independent T-Test1,2,3,4 and conclude that the LON:ONT 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 Buy LON:ONT stock.

Financial State Forecast for LON:ONT OXFORD NANOPORE TECHNOLOGIES PLC Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Caa1
Operational Risk 6739
Market Risk3941
Technical Analysis3242
Fundamental Analysis7431
Risk Unsystematic5046

Prediction Confidence Score

Trust metric by Neural Network: 80 out of 100 with 642 signals.

References

  1. M. Colby, T. Duchow-Pressley, J. J. Chung, and K. Tumer. Local approximation of difference evaluation functions. In Proceedings of the Fifteenth International Joint Conference on Autonomous Agents and Multiagent Systems, Singapore, May 2016
  2. Bengio Y, Schwenk H, Senécal JS, Morin F, Gauvain JL. 2006. Neural probabilistic language models. In Innovations in Machine Learning: Theory and Applications, ed. DE Holmes, pp. 137–86. Berlin: Springer
  3. V. Konda and J. Tsitsiklis. Actor-Critic algorithms. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1008–1014, 2000
  4. D. Bertsekas and J. Tsitsiklis. Neuro-dynamic programming. Athena Scientific, 1996.
  5. Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
  6. J. Peters, S. Vijayakumar, and S. Schaal. Natural actor-critic. In Proceedings of the Sixteenth European Conference on Machine Learning, pages 280–291, 2005.
  7. Breiman L, Friedman J, Stone CJ, Olshen RA. 1984. Classification and Regression Trees. Boca Raton, FL: CRC Press
Frequently Asked QuestionsQ: What is the prediction methodology for LON:ONT stock?
A: LON:ONT stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) and Independent T-Test
Q: Is LON:ONT stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:ONT Stock.
Q: Is OXFORD NANOPORE TECHNOLOGIES PLC stock a good investment?
A: The consensus rating for OXFORD NANOPORE TECHNOLOGIES PLC is Buy and assigned short-term B2 & long-term Caa1 forecasted stock rating.
Q: What is the consensus rating of LON:ONT stock?
A: The consensus rating for LON:ONT is Buy.
Q: What is the prediction period for LON:ONT stock?
A: The prediction period for LON:ONT is (n+8 weeks)

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