Modelling A.I. in Economics

LON:TENG TEN LIFESTYLE GROUP PLC

Outlook: TEN LIFESTYLE GROUP PLC assigned short-term B1 & long-term Baa2 forecasted stock rating.
Dominant Strategy : Wait until speculative trend diminishes
Time series to forecast n: 07 Dec 2022 for (n+16 weeks)
Methodology : Statistical Inference (ML)

Abstract

Several intelligent data mining approaches, including neural networks, have been widely employed by academics during the last decade. In today's rapidly evolving economy, stock market data prediction and analysis play a significant role. Several non-linear models like neural network, generalized autoregressive conditional heteroskedasticity (GARCH) and autoregressive conditional heteroscedasticity (ARCH) as well as linear models like Auto- Regressive Integrated Moving Average (ARIMA), Moving Average (MA) and Auto Regressive (AR) may be used for stock forecasting.(Li, X., Xie, H., Wang, R., Cai, Y., Cao, J., Wang, F., Min, H. and Deng, X., 2016. Empirical analysis: stock market prediction via extreme learning machine. Neural Computing and Applications, 27(1), pp.67-78.) We evaluate TEN LIFESTYLE GROUP PLC prediction models with Statistical Inference (ML) and Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:TENG stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:TENG stock.

Key Points

  1. What are the most successful trading algorithms?
  2. What are buy sell or hold recommendations?
  3. Market Risk

LON:TENG Target Price Prediction Modeling Methodology

We consider TEN LIFESTYLE GROUP PLC Decision Process with Statistical Inference (ML) where A is the set of discrete actions of LON:TENG 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(Statistical Hypothesis Testing)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(Statistical Inference (ML)) X S(n):→ (n+16 weeks) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:TENG 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:TENG Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: LON:TENG TEN LIFESTYLE GROUP PLC
Time series to forecast n: 07 Dec 2022 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:TENG 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 TEN LIFESTYLE GROUP PLC

  1. An entity is not required to restate prior periods to reflect the application of these amendments. The entity may restate prior periods if, and only if, it is possible without the use of hindsight. If an entity does not restate prior periods, the entity shall recognise any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application of these amendments in the opening retained earnings (or other component of equity, as appropriate) of the annual reporting period that includes the date of initial application of these amendments.
  2. A similar example of a non-financial item is a specific type of crude oil from a particular oil field that is priced off the relevant benchmark crude oil. If an entity sells that crude oil under a contract using a contractual pricing formula that sets the price per barrel at the benchmark crude oil price minus CU10 with a floor of CU15, the entity can designate as the hedged item the entire cash flow variability under the sales contract that is attributable to the change in the benchmark crude oil price. However, the entity cannot designate a component that is equal to the full change in the benchmark crude oil price. Hence, as long as the forward price (for each delivery) does not fall below CU25, the hedged item has the same cash flow variability as a crude oil sale at the benchmark crude oil price (or with a positive spread). However, if the forward price for any delivery falls below CU25, the hedged item has a lower cash flow variability than a crude oil sale at the benchmark crude oil price (or with a positive spread).
  3. However, the fact that a financial asset is non-recourse does not in itself necessarily preclude the financial asset from meeting the condition in paragraphs 4.1.2(b) and 4.1.2A(b). In such situations, the creditor is required to assess ('look through to') the particular underlying assets or cash flows to determine whether the contractual cash flows of the financial asset being classified are payments of principal and interest on the principal amount outstanding. If the terms of the financial asset give rise to any other cash flows or limit the cash flows in a manner inconsistent with payments representing principal and interest, the financial asset does not meet the condition in paragraphs 4.1.2(b) and 4.1.2A(b). Whether the underlying assets are financial assets or non-financial assets does not in itself affect this assessment.
  4. If there are changes in circumstances that affect hedge effectiveness, an entity may have to change the method for assessing whether a hedging relationship meets the hedge effectiveness requirements in order to ensure that the relevant characteristics of the hedging relationship, including the sources of hedge ineffectiveness, are still captured.

*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

TEN LIFESTYLE GROUP PLC assigned short-term B1 & long-term Baa2 forecasted stock rating. We evaluate the prediction models Statistical Inference (ML) with Statistical Hypothesis Testing1,2,3,4 and conclude that the LON:TENG stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:TENG stock.

Financial State Forecast for LON:TENG TEN LIFESTYLE GROUP PLC Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1Baa2
Operational Risk 5779
Market Risk3979
Technical Analysis6288
Fundamental Analysis8684
Risk Unsystematic4643

Prediction Confidence Score

Trust metric by Neural Network: 87 out of 100 with 707 signals.

References

  1. Knox SW. 2018. Machine Learning: A Concise Introduction. Hoboken, NJ: Wiley
  2. Greene WH. 2000. Econometric Analysis. Upper Saddle River, N J: Prentice Hall. 4th ed.
  3. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Can neural networks predict stock market?(ATVI Stock Forecast). AC Investment Research Journal, 101(3).
  4. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
  5. J. Ott. A Markov decision model for a surveillance application and risk-sensitive Markov decision processes. PhD thesis, Karlsruhe Institute of Technology, 2010.
  6. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
  7. T. Shardlow and A. Stuart. A perturbation theory for ergodic Markov chains and application to numerical approximations. SIAM journal on numerical analysis, 37(4):1120–1137, 2000
Frequently Asked QuestionsQ: What is the prediction methodology for LON:TENG stock?
A: LON:TENG stock prediction methodology: We evaluate the prediction models Statistical Inference (ML) and Statistical Hypothesis Testing
Q: Is LON:TENG stock a buy or sell?
A: The dominant strategy among neural network is to Wait until speculative trend diminishes LON:TENG Stock.
Q: Is TEN LIFESTYLE GROUP PLC stock a good investment?
A: The consensus rating for TEN LIFESTYLE GROUP PLC is Wait until speculative trend diminishes and assigned short-term B1 & long-term Baa2 forecasted stock rating.
Q: What is the consensus rating of LON:TENG stock?
A: The consensus rating for LON:TENG is Wait until speculative trend diminishes.
Q: What is the prediction period for LON:TENG stock?
A: The prediction period for LON:TENG is (n+16 weeks)

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