Modelling A.I. in Economics

HOUR Hour Loop Inc. Common Stock

Outlook: Hour Loop Inc. Common Stock assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : SellHold
Time series to forecast n: 28 Dec 2022 for (n+3 month)
Methodology : Modular Neural Network (Market Volatility Analysis)

Abstract

Application of machine learning for stock prediction is attracting a lot of attention in recent years. A large amount of research has been conducted in this area and multiple existing results have shown that machine learning methods could be successfully used toward stock predicting using stocks' historical data. Most of these existing approaches have focused on short term prediction using stocks' historical price and technical indicators.(Huynh, H.D., Dang, L.M. and Duong, D., 2017, December. A new model for stock price movements prediction using deep neural network. In Proceedings of the Eighth International Symposium on Information and Communication Technology (pp. 57-62).) We evaluate Hour Loop Inc. Common Stock prediction models with Modular Neural Network (Market Volatility Analysis) and Multiple Regression1,2,3,4 and conclude that the HOUR stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: SellHold

Key Points

  1. Stock Rating
  2. What are the most successful trading algorithms?
  3. Why do we need predictive models?

HOUR Target Price Prediction Modeling Methodology

We consider Hour Loop Inc. Common Stock Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of HOUR 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(Modular Neural Network (Market Volatility Analysis)) X S(n):→ (n+3 month) e x rx

n:Time series to forecast

p:Price signals of HOUR 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?

HOUR Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: HOUR Hour Loop Inc. Common Stock
Time series to forecast n: 28 Dec 2022 for (n+3 month)

According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: SellHold

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 Hour Loop Inc. Common Stock

  1. For the purposes of applying the requirement in paragraph 5.7.7(a), credit risk is different from asset-specific performance risk. Asset-specific performance risk is not related to the risk that an entity will fail to discharge a particular obligation but instead it is related to the risk that a single asset or a group of assets will perform poorly (or not at all).
  2. For purchased or originated credit-impaired financial assets, expected credit losses shall be discounted using the credit-adjusted effective interest rate determined at initial recognition.
  3. For the purposes of the transition provisions in paragraphs 7.2.1, 7.2.3–7.2.28 and 7.3.2, the date of initial application is the date when an entity first applies those requirements of this Standard and must be the beginning of a reporting period after the issue of this Standard. Depending on the entity's chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.
  4. Lifetime expected credit losses are not recognised on a financial instrument simply because it was considered to have low credit risk in the previous reporting period and is not considered to have low credit risk at the reporting date. In such a case, an entity shall determine whether there has been a significant increase in credit risk since initial recognition and thus whether lifetime expected credit losses are required to be recognised in accordance with paragraph 5.5.3.

*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

Hour Loop Inc. Common Stock assigned short-term Ba1 & long-term Ba1 estimated rating. We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) with Multiple Regression1,2,3,4 and conclude that the HOUR stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: SellHold

HOUR Hour Loop Inc. Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2C
Balance SheetCBaa2
Leverage RatiosCaa2B1
Cash FlowBa1Caa2
Rates of Return and ProfitabilityBa2B2

*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: 93 out of 100 with 849 signals.

References

  1. Canova, F. B. E. Hansen (1995), "Are seasonal patterns constant over time? A test for seasonal stability," Journal of Business and Economic Statistics, 13, 237–252.
  2. Swaminathan A, Joachims T. 2015. Batch learning from logged bandit feedback through counterfactual risk minimization. J. Mach. Learn. Res. 16:1731–55
  3. M. L. Littman. Friend-or-foe q-learning in general-sum games. In Proceedings of the Eighteenth International Conference on Machine Learning (ICML 2001), Williams College, Williamstown, MA, USA, June 28 - July 1, 2001, pages 322–328, 2001
  4. Knox SW. 2018. Machine Learning: A Concise Introduction. Hoboken, NJ: Wiley
  5. V. Borkar. A sensitivity formula for the risk-sensitive cost and the actor-critic algorithm. Systems & Control Letters, 44:339–346, 2001
  6. J. Filar, L. Kallenberg, and H. Lee. Variance-penalized Markov decision processes. Mathematics of Opera- tions Research, 14(1):147–161, 1989
  7. Abadie A, Imbens GW. 2011. Bias-corrected matching estimators for average treatment effects. J. Bus. Econ. Stat. 29:1–11
Frequently Asked QuestionsQ: What is the prediction methodology for HOUR stock?
A: HOUR stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Volatility Analysis) and Multiple Regression
Q: Is HOUR stock a buy or sell?
A: The dominant strategy among neural network is to SellHold HOUR Stock.
Q: Is Hour Loop Inc. Common Stock stock a good investment?
A: The consensus rating for Hour Loop Inc. Common Stock is SellHold and assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of HOUR stock?
A: The consensus rating for HOUR is SellHold.
Q: What is the prediction period for HOUR stock?
A: The prediction period for HOUR is (n+3 month)

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