Modelling A.I. in Economics

EQC^D Equity Commonwealth 6.50% Pfd Conv Shs Ser D

Outlook: Equity Commonwealth 6.50% Pfd Conv Shs Ser D assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 24 Dec 2022 for (n+1 year)
Methodology : Active Learning (ML)

Abstract

Machine learning addresses the question of how to build computers that improve automatically through experience. It is one of today's most rapidly growing technical fields, lying at the intersection of computer science and statistics, and at the core of artificial intelligence and data science.(Devadoss, A.V. and Ligori, T.A.A., 2013. Stock prediction using artificial neural networks. International Journal of Data Mining Techniques and Applications, 2(1), pp.283-291.) We evaluate Equity Commonwealth 6.50% Pfd Conv Shs Ser D prediction models with Active Learning (ML) and Multiple Regression1,2,3,4 and conclude that the EQC^D 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. How useful are statistical predictions?
  2. Can neural networks predict stock market?
  3. Should I buy stocks now or wait amid such uncertainty?

EQC^D Target Price Prediction Modeling Methodology

We consider Equity Commonwealth 6.50% Pfd Conv Shs Ser D Decision Process with Active Learning (ML) where A is the set of discrete actions of EQC^D 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(Multiple Regression)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(Active Learning (ML)) X S(n):→ (n+1 year) S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of EQC^D 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?

EQC^D Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: EQC^D Equity Commonwealth 6.50% Pfd Conv Shs Ser D
Time series to forecast n: 24 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%

IFRS Reconciliation Adjustments for Equity Commonwealth 6.50% Pfd Conv Shs Ser D

  1. The assessment of whether lifetime expected credit losses should be recognised is based on significant increases in the likelihood or risk of a default occurring since initial recognition (irrespective of whether a financial instrument has been repriced to reflect an increase in credit risk) instead of on evidence of a financial asset being credit-impaired at the reporting date or an actual default occurring. Generally, there will be a significant increase in credit risk before a financial asset becomes credit-impaired or an actual default occurs.
  2. An embedded prepayment option in an interest-only or principal-only strip is closely related to the host contract provided the host contract (i) initially resulted from separating the right to receive contractual cash flows of a financial instrument that, in and of itself, did not contain an embedded derivative, and (ii) does not contain any terms not present in the original host debt contract.
  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. If subsequently an entity reasonably expects that the alternative benchmark rate will not be separately identifiable within 24 months from the date the entity designated it as a non-contractually specified risk component for the first time, the entity shall cease applying the requirement in paragraph 6.9.11 to that alternative benchmark rate and discontinue hedge accounting prospectively from the date of that reassessment for all hedging relationships in which the alternative benchmark rate was designated as a noncontractually specified risk component.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Equity Commonwealth 6.50% Pfd Conv Shs Ser D assigned short-term Ba1 & long-term Ba1 estimated rating. We evaluate the prediction models Active Learning (ML) with Multiple Regression1,2,3,4 and conclude that the EQC^D 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

EQC^D Equity Commonwealth 6.50% Pfd Conv Shs Ser D Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Baa2
Balance SheetB2Caa2
Leverage RatiosBaa2Ba3
Cash FlowB3B1
Rates of Return and ProfitabilityB3Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 84 out of 100 with 705 signals.

References

  1. Christou, C., P. A. V. B. Swamy G. S. Tavlas (1996), "Modelling optimal strategies for the allocation of wealth in multicurrency investments," International Journal of Forecasting, 12, 483–493.
  2. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  3. Semenova V, Goldman M, Chernozhukov V, Taddy M. 2018. Orthogonal ML for demand estimation: high dimensional causal inference in dynamic panels. arXiv:1712.09988 [stat.ML]
  4. Scott SL. 2010. A modern Bayesian look at the multi-armed bandit. Appl. Stoch. Models Bus. Ind. 26:639–58
  5. Y. Chow and M. Ghavamzadeh. Algorithms for CVaR optimization in MDPs. In Advances in Neural Infor- mation Processing Systems, pages 3509–3517, 2014.
  6. S. Bhatnagar. An actor-critic algorithm with function approximation for discounted cost constrained Markov decision processes. Systems & Control Letters, 59(12):760–766, 2010
  7. Tibshirani R. 1996. Regression shrinkage and selection via the lasso. J. R. Stat. Soc. B 58:267–88
Frequently Asked QuestionsQ: What is the prediction methodology for EQC^D stock?
A: EQC^D stock prediction methodology: We evaluate the prediction models Active Learning (ML) and Multiple Regression
Q: Is EQC^D stock a buy or sell?
A: The dominant strategy among neural network is to Buy EQC^D Stock.
Q: Is Equity Commonwealth 6.50% Pfd Conv Shs Ser D stock a good investment?
A: The consensus rating for Equity Commonwealth 6.50% Pfd Conv Shs Ser D is Buy and assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of EQC^D stock?
A: The consensus rating for EQC^D is Buy.
Q: What is the prediction period for EQC^D stock?
A: The prediction period for EQC^D is (n+1 year)

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