Modelling A.I. in Economics

LON:CLCO CLOUDCOCO GROUP PLC

Buy

Hold

Sell

Speculative

Outlook: CLOUDCOCO GROUP PLC assigned short-term B2 & long-term Ba3 forecasted stock rating.
Dominant Strategy : Buy
Time series to forecast n: 06 Dec 2022 for (n+6 month)
Methodology : Supervised Machine Learning (ML)

Abstract

Stock market or Share market is one of the most complicated and sophisticated way to do business. Small ownerships, brokerage corporations, banking sector, all depend on this very body to make revenue and divide risks; a very complicated model. However, this paper proposes to use machine learning algorithm to predict the future stock price for exchange by using open source libraries and preexisting algorithms to help make this unpredictable format of business a little more predictable.(Chen, S. and He, H., 2018, October. Stock prediction using convolutional neural network. In IOP Conference series: materials science and engineering (Vol. 435, No. 1, p. 012026). IOP Publishing.) We evaluate CLOUDCOCO GROUP PLC prediction models with Supervised Machine Learning (ML) and Beta1,2,3,4 and conclude that the LON:CLCO stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy LON:CLCO stock.

Key Points

  1. Fundemental Analysis with Algorithmic Trading
  2. How can neural networks improve predictions?
  3. Investment Risk

LON:CLCO Target Price Prediction Modeling Methodology

We consider CLOUDCOCO GROUP PLC Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of LON:CLCO 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(Beta)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+6 month) S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of LON:CLCO 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?

LON:CLCO Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: LON:CLCO CLOUDCOCO GROUP PLC
Time series to forecast n: 06 Dec 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy LON:CLCO 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 CLOUDCOCO GROUP PLC

  1. 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.
  2. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss. If such a mismatch would not be created or enlarged, the entity is required to present the effects of changes in the liability's credit risk in other comprehensive income.
  3. If an entity prepares interim financial reports in accordance with IAS 34 Interim Financial Reporting the entity need not apply the requirements in this Standard to interim periods prior to the date of initial application if it is impracticable (as defined in IAS 8).
  4. If, in applying paragraph 7.2.44, an entity reinstates a discontinued hedging relationship, the entity shall read references in paragraphs 6.9.11 and 6.9.12 to the date the alternative benchmark rate is designated as a noncontractually specified risk component for the first time as referring to the date of initial application of these amendments (ie the 24-month period for that alternative benchmark rate designated as a non-contractually specified risk component begins from the 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

CLOUDCOCO GROUP PLC assigned short-term B2 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Supervised Machine Learning (ML) with Beta1,2,3,4 and conclude that the LON:CLCO stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy LON:CLCO stock.

Financial State Forecast for LON:CLCO CLOUDCOCO GROUP PLC Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Operational Risk 3539
Market Risk3778
Technical Analysis7354
Fundamental Analysis6474
Risk Unsystematic7476

Prediction Confidence Score

Trust metric by Neural Network: 72 out of 100 with 517 signals.

References

  1. Rosenbaum PR, Rubin DB. 1983. The central role of the propensity score in observational studies for causal effects. Biometrika 70:41–55
  2. F. A. Oliehoek and C. Amato. A Concise Introduction to Decentralized POMDPs. SpringerBriefs in Intelligent Systems. Springer, 2016
  3. R. Howard and J. Matheson. Risk sensitive Markov decision processes. Management Science, 18(7):356– 369, 1972
  4. Mikolov T, Sutskever I, Chen K, Corrado GS, Dean J. 2013b. Distributed representations of words and phrases and their compositionality. In Advances in Neural Information Processing Systems, Vol. 26, ed. Z Ghahramani, M Welling, C Cortes, ND Lawrence, KQ Weinberger, pp. 3111–19. San Diego, CA: Neural Inf. Process. Syst. Found.
  5. Clements, M. P. D. F. Hendry (1996), "Intercept corrections and structural change," Journal of Applied Econometrics, 11, 475–494.
  6. J. G. Schneider, W. Wong, A. W. Moore, and M. A. Riedmiller. Distributed value functions. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 371–378, 1999.
  7. 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]
Frequently Asked QuestionsQ: What is the prediction methodology for LON:CLCO stock?
A: LON:CLCO stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Beta
Q: Is LON:CLCO stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:CLCO Stock.
Q: Is CLOUDCOCO GROUP PLC stock a good investment?
A: The consensus rating for CLOUDCOCO GROUP PLC is Buy and assigned short-term B2 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:CLCO stock?
A: The consensus rating for LON:CLCO is Buy.
Q: What is the prediction period for LON:CLCO stock?
A: The prediction period for LON:CLCO is (n+6 month)

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