Modelling A.I. in Economics

HLN Haleon plc American Depositary Shares (Each representing two Ordinary Shares)

Haleon plc American Depositary Shares (Each representing two Ordinary Shares) Research Report

Abstract

With the advent of technological marvels like global digitization, the prediction of the stock market has entered a technologically advanced era, revamping the old model of trading. With the ceaseless increase in market capitalization, stock trading has become a center of investment for many financial investors. Many analysts and researchers have developed tools and techniques that predict stock price movements and help investors in proper decision-making.(Kim, K.J. and Han, I., 2000. Genetic algorithms approach to feature discretization in artificial neural networks for the prediction of stock price index. Expert systems with Applications, 19(2), pp.125-132.) We evaluate Haleon plc American Depositary Shares (Each representing two Ordinary Shares) prediction models with Supervised Machine Learning (ML) and Independent T-Test1,2,3,4 and conclude that the HLN stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold HLN stock.

Key Points

  1. What is neural prediction?
  2. Trading Signals
  3. What is neural prediction?

HLN Target Price Prediction Modeling Methodology

We consider Haleon plc American Depositary Shares (Each representing two Ordinary Shares) Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of HLN 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(Supervised Machine Learning (ML)) X S(n):→ (n+1 year) i = 1 n a i

n:Time series to forecast

p:Price signals of HLN 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?

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

Sample Set: Neural Network
Stock/Index: HLN Haleon plc American Depositary Shares (Each representing two Ordinary Shares)
Time series to forecast n: 04 Dec 2022 for (n+1 year)

According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold HLN 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 Haleon plc American Depositary Shares (Each representing two Ordinary Shares)

  1. If changes are made in addition to those changes required by interest rate benchmark reform to the financial asset or financial liability designated in a hedging relationship (as described in paragraphs 5.4.6–5.4.8) or to the designation of the hedging relationship (as required by paragraph 6.9.1), an entity shall first apply the applicable requirements in this Standard to determine if those additional changes result in the discontinuation of hedge accounting. If the additional changes do not result in the discontinuation of hedge accounting, an entity shall amend the formal designation of the hedging relationship as specified in paragraph 6.9.1.
  2. An entity shall assess at the inception of the hedging relationship, and on an ongoing basis, whether a hedging relationship meets the hedge effectiveness requirements. At a minimum, an entity shall perform the ongoing assessment at each reporting date or upon a significant change in the circumstances affecting the hedge effectiveness requirements, whichever comes first. The assessment relates to expectations about hedge effectiveness and is therefore only forward-looking.
  3. IFRS 16, issued in January 2016, amended paragraphs 2.1, 5.5.15, B4.3.8, B5.5.34 and B5.5.46. An entity shall apply those amendments when it applies IFRS 16.
  4. Expected credit losses shall be discounted to the reporting date, not to the expected default or some other date, using the effective interest rate determined at initial recognition or an approximation thereof. If a financial instrument has a variable interest rate, expected credit losses shall be discounted using the current effective interest rate determined in accordance with paragraph B5.4.5.

*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

Haleon plc American Depositary Shares (Each representing two Ordinary Shares) assigned short-term Ba3 & long-term B2 forecasted stock rating. We evaluate the prediction models Supervised Machine Learning (ML) with Independent T-Test1,2,3,4 and conclude that the HLN stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold HLN stock.

Financial State Forecast for HLN Haleon plc American Depositary Shares (Each representing two Ordinary Shares) Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3B2
Operational Risk 7248
Market Risk6383
Technical Analysis6331
Fundamental Analysis7866
Risk Unsystematic5538

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 504 signals.

References

  1. Arjovsky M, Bottou L. 2017. Towards principled methods for training generative adversarial networks. arXiv:1701.04862 [stat.ML]
  2. Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, Newey W. 2017. Double/debiased/ Neyman machine learning of treatment effects. Am. Econ. Rev. 107:261–65
  3. Scholkopf B, Smola AJ. 2001. Learning with Kernels: Support Vector Machines, Regularization, Optimization, and Beyond. Cambridge, MA: MIT Press
  4. M. Puterman. Markov Decision Processes: Discrete Stochastic Dynamic Programming. Wiley, New York, 1994.
  5. Wooldridge JM. 2010. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press
  6. A. Tamar, Y. Glassner, and S. Mannor. Policy gradients beyond expectations: Conditional value-at-risk. In AAAI, 2015
  7. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., How do you know when a stock will go up or down?(STJ Stock Forecast). AC Investment Research Journal, 101(3).
Frequently Asked QuestionsQ: What is the prediction methodology for HLN stock?
A: HLN stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Independent T-Test
Q: Is HLN stock a buy or sell?
A: The dominant strategy among neural network is to Hold HLN Stock.
Q: Is Haleon plc American Depositary Shares (Each representing two Ordinary Shares) stock a good investment?
A: The consensus rating for Haleon plc American Depositary Shares (Each representing two Ordinary Shares) is Hold and assigned short-term Ba3 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of HLN stock?
A: The consensus rating for HLN is Hold.
Q: What is the prediction period for HLN stock?
A: The prediction period for HLN is (n+1 year)

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