Modelling A.I. in Economics

EDTXW EdtechX Holdings Acquisition Corp. II Warrant

Outlook: EdtechX Holdings Acquisition Corp. II Warrant assigned short-term B1 & long-term B1 forecasted stock rating.
Dominant Strategy : Buy
Time series to forecast n: 15 Dec 2022 for (n+1 year)
Methodology : Multi-Instance Learning (ML)

Abstract

Prediction of stock market is a long-time attractive topic to researchers from different fields. In particular, numerous studies have been conducted to predict the movement of stock market using machine learning algorithms such as support vector machine (SVM) and reinforcement learning. In this project, we propose a new prediction algorithm that exploits the temporal correlation among global stock markets and various financial products to predict the next-day stock trend.(Khan, W., Ghazanfar, M.A., Azam, M.A., Karami, A., Alyoubi, K.H. and Alfakeeh, A.S., 2020. Stock market prediction using machine learning classifiers and social media, news. Journal of Ambient Intelligence and Humanized Computing, pp.1-24.) We evaluate EdtechX Holdings Acquisition Corp. II Warrant prediction models with Multi-Instance Learning (ML) and Spearman Correlation1,2,3,4 and conclude that the EDTXW stock is predictable in the short/long term. According to price forecasts for (n+1 year) period, the dominant strategy among neural network is: Buy

Key Points

  1. Stock Rating
  2. How do you decide buy or sell a stock?
  3. Trust metric by Neural Network

EDTXW Target Price Prediction Modeling Methodology

We consider EdtechX Holdings Acquisition Corp. II Warrant Decision Process with Multi-Instance Learning (ML) where A is the set of discrete actions of EDTXW 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(Spearman Correlation)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(Multi-Instance Learning (ML)) X S(n):→ (n+1 year) e x rx

n:Time series to forecast

p:Price signals of EDTXW 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?

EDTXW Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: EDTXW EdtechX Holdings Acquisition Corp. II Warrant
Time series to forecast n: 15 Dec 2022 for (n+1 year)

According to price forecasts for (n+1 year) 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 EdtechX Holdings Acquisition Corp. II Warrant

  1. When defining default for the purposes of determining the risk of a default occurring, an entity shall apply a default definition that is consistent with the definition used for internal credit risk management purposes for the relevant financial instrument and consider qualitative indicators (for example, financial covenants) when appropriate. However, there is a rebuttable presumption that default does not occur later than when a financial asset is 90 days past due unless an entity has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. The definition of default used for these purposes shall be applied consistently to all financial instruments unless information becomes available that demonstrates that another default definition is more appropriate for a particular financial instrument.
  2. Paragraph 5.7.5 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument that is not held for trading. This election is made on an instrument-by-instrument (ie share-by-share) basis. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss. However, the entity may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss in accordance with paragraph 5.7.6 unless the dividend clearly represents a recovery of part of the cost of the investment.
  3. At the date of initial application, an entity is permitted to make the designation in paragraph 2.5 for contracts that already exist on the date but only if it designates all similar contracts. The change in the net assets resulting from such designations shall be recognised in retained earnings at the date of initial application.
  4. An entity that first applies these amendments after it first applies this Standard shall apply paragraphs 7.2.32–7.2.34. The entity shall also apply the other transition requirements in this Standard necessary for applying these amendments. For that purpose, references to the date of initial application shall be read as referring to the beginning of the reporting period in which an entity first applies these amendments (date of initial application of these amendments).

*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

EdtechX Holdings Acquisition Corp. II Warrant assigned short-term B1 & long-term B1 forecasted stock rating. We evaluate the prediction models Multi-Instance Learning (ML) with Spearman Correlation1,2,3,4 and conclude that the EDTXW stock is predictable in the short/long term. According to price forecasts for (n+1 year) period, the dominant strategy among neural network is: Buy

Financial State Forecast for EDTXW EdtechX Holdings Acquisition Corp. II Warrant Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B1
Operational Risk 6933
Market Risk8287
Technical Analysis6771
Fundamental Analysis5774
Risk Unsystematic3237

Prediction Confidence Score

Trust metric by Neural Network: 72 out of 100 with 467 signals.

References

  1. Van der Vaart AW. 2000. Asymptotic Statistics. Cambridge, UK: Cambridge Univ. Press
  2. R. Williams. Simple statistical gradient-following algorithms for connectionist reinforcement learning. Ma- chine learning, 8(3-4):229–256, 1992
  3. Belloni A, Chernozhukov V, Hansen C. 2014. High-dimensional methods and inference on structural and treatment effects. J. Econ. Perspect. 28:29–50
  4. Thompson WR. 1933. On the likelihood that one unknown probability exceeds another in view of the evidence of two samples. Biometrika 25:285–94
  5. Athey S. 2019. The impact of machine learning on economics. In The Economics of Artificial Intelligence: An Agenda, ed. AK Agrawal, J Gans, A Goldfarb. Chicago: Univ. Chicago Press. In press
  6. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
  7. Bottomley, P. R. Fildes (1998), "The role of prices in models of innovation diffusion," Journal of Forecasting, 17, 539–555.
Frequently Asked QuestionsQ: What is the prediction methodology for EDTXW stock?
A: EDTXW stock prediction methodology: We evaluate the prediction models Multi-Instance Learning (ML) and Spearman Correlation
Q: Is EDTXW stock a buy or sell?
A: The dominant strategy among neural network is to Buy EDTXW Stock.
Q: Is EdtechX Holdings Acquisition Corp. II Warrant stock a good investment?
A: The consensus rating for EdtechX Holdings Acquisition Corp. II Warrant is Buy and assigned short-term B1 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of EDTXW stock?
A: The consensus rating for EDTXW is Buy.
Q: What is the prediction period for EDTXW stock?
A: The prediction period for EDTXW is (n+1 year)

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