Modelling A.I. in Economics

DERM Journey Medical Corporation Common Stock (Forecast)

Outlook: Journey Medical Corporation Common Stock assigned short-term Baa2 & long-term B2 forecasted stock rating.
Dominant Strategy : Buy
Time series to forecast n: 16 Dec 2022 for (n+4 weeks)
Methodology : Modular Neural Network (Market Direction Analysis)

Abstract

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.(Bi, Q., Yan, H., Chen, C. and Su, Q., 2020, August. An integrated machine learning framework for stock price prediction. In China Conference on Information Retrieval (pp. 99-110). Springer, Cham.) We evaluate Journey Medical Corporation Common Stock prediction models with Modular Neural Network (Market Direction Analysis) and Paired T-Test1,2,3,4 and conclude that the DERM stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Buy

Key Points

  1. How do you pick a stock?
  2. Buy, Sell and Hold Signals
  3. Why do we need predictive models?

DERM Target Price Prediction Modeling Methodology

We consider Journey Medical Corporation Common Stock Decision Process with Modular Neural Network (Market Direction Analysis) where A is the set of discrete actions of DERM 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(Paired 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 Direction Analysis)) X S(n):→ (n+4 weeks) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of DERM 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?

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

Sample Set: Neural Network
Stock/Index: DERM Journey Medical Corporation Common Stock
Time series to forecast n: 16 Dec 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Buy

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 (Grey to Black): *Technical Analysis%

Adjusted IFRS* Prediction Methods for Journey Medical Corporation Common Stock

  1. When an entity, consistent with its hedge documentation, frequently resets (ie discontinues and restarts) a hedging relationship because both the hedging instrument and the hedged item frequently change (ie the entity uses a dynamic process in which both the hedged items and the hedging instruments used to manage that exposure do not remain the same for long), the entity shall apply the requirement in paragraphs 6.3.7(a) and B6.3.8—that the risk component is separately identifiable—only when it initially designates a hedged item in that hedging relationship. A hedged item that has been assessed at the time of its initial designation in the hedging relationship, whether it was at the time of the hedge inception or subsequently, is not reassessed at any subsequent redesignation in the same hedging relationship.
  2. Accordingly the date of the modification shall be treated as the date of initial recognition of that financial asset when applying the impairment requirements to the modified financial asset. This typically means measuring the loss allowance at an amount equal to 12-month expected credit losses until the requirements for the recognition of lifetime expected credit losses in paragraph 5.5.3 are met. However, in some unusual circumstances following a modification that results in derecognition of the original financial asset, there may be evidence that the modified financial asset is credit-impaired at initial recognition, and thus, the financial asset should be recognised as an originated credit-impaired financial asset. This might occur, for example, in a situation in which there was a substantial modification of a distressed asset that resulted in the derecognition of the original financial asset. In such a case, it may be possible for the modification to result in a new financial asset which is credit-impaired at initial recognition.
  3. If a put option written by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at fair value, the associated liability is measured at the option exercise price plus the time value of the option. The measurement of the asset at fair value is limited to the lower of the fair value and the option exercise price because the entity has no right to increases in the fair value of the transferred asset above the exercise price of the option. This ensures that the net carrying amount of the asset and the associated liability is the fair value of the put option obligation. For example, if the fair value of the underlying asset is CU120, the option exercise price is CU100 and the time value of the option is CU5, the carrying amount of the associated liability is CU105 (CU100 + CU5) and the carrying amount of the asset is CU100 (in this case the option exercise price).
  4. The underlying pool must contain one or more instruments that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding

*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

Journey Medical Corporation Common Stock assigned short-term Baa2 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market Direction Analysis) with Paired T-Test1,2,3,4 and conclude that the DERM stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Buy

Financial State Forecast for DERM Journey Medical Corporation Common Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Baa2B2
Operational Risk 8866
Market Risk6433
Technical Analysis8957
Fundamental Analysis5464
Risk Unsystematic8345

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 598 signals.

References

  1. Hill JL. 2011. Bayesian nonparametric modeling for causal inference. J. Comput. Graph. Stat. 20:217–40
  2. Li L, Chen S, Kleban J, Gupta A. 2014. Counterfactual estimation and optimization of click metrics for search engines: a case study. In Proceedings of the 24th International Conference on the World Wide Web, pp. 929–34. New York: ACM
  3. Bai J, Ng S. 2017. Principal components and regularized estimation of factor models. arXiv:1708.08137 [stat.ME]
  4. Wan M, Wang D, Goldman M, Taddy M, Rao J, et al. 2017. Modeling consumer preferences and price sensitiv- ities from large-scale grocery shopping transaction logs. In Proceedings of the 26th International Conference on the World Wide Web, pp. 1103–12. New York: ACM
  5. R. Sutton, D. McAllester, S. Singh, and Y. Mansour. Policy gradient methods for reinforcement learning with function approximation. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1057–1063, 2000
  6. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
  7. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
Frequently Asked QuestionsQ: What is the prediction methodology for DERM stock?
A: DERM stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Paired T-Test
Q: Is DERM stock a buy or sell?
A: The dominant strategy among neural network is to Buy DERM Stock.
Q: Is Journey Medical Corporation Common Stock stock a good investment?
A: The consensus rating for Journey Medical Corporation Common Stock is Buy and assigned short-term Baa2 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of DERM stock?
A: The consensus rating for DERM is Buy.
Q: What is the prediction period for DERM stock?
A: The prediction period for DERM is (n+4 weeks)

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