Modelling A.I. in Economics

LON:UKCM UK COMMERCIAL PROPERTY REIT LIMITED

Outlook: UK COMMERCIAL PROPERTY REIT LIMITED assigned short-term B1 & long-term Ba3 forecasted stock rating.
Dominant Strategy : Buy
Time series to forecast n: 15 Dec 2022 for (n+4 weeks)
Methodology : Transductive Learning (ML)

Abstract

Stock market prediction is the act of trying to determine the future value of a company stock or other financial instrument traded on a financial exchange. The successful prediction of a stock's future price will maximize investor's gains. This paper proposes a machine learning model to predict stock market price.(Lee, J.W., 2001, June. Stock price prediction using reinforcement learning. In ISIE 2001. 2001 IEEE International Symposium on Industrial Electronics Proceedings (Cat. No. 01TH8570) (Vol. 1, pp. 690-695). IEEE.) We evaluate UK COMMERCIAL PROPERTY REIT LIMITED prediction models with Transductive Learning (ML) and Multiple Regression1,2,3,4 and conclude that the LON:UKCM stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Buy

Key Points

  1. How do you know when a stock will go up or down?
  2. What is the best way to predict stock prices?
  3. How do you pick a stock?

LON:UKCM Target Price Prediction Modeling Methodology

We consider UK COMMERCIAL PROPERTY REIT LIMITED Decision Process with Transductive Learning (ML) where A is the set of discrete actions of LON:UKCM 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(Transductive Learning (ML)) X S(n):→ (n+4 weeks) i = 1 n s i

n:Time series to forecast

p:Price signals of LON:UKCM 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:UKCM Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: LON:UKCM UK COMMERCIAL PROPERTY REIT LIMITED
Time series to forecast n: 15 Dec 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) 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%

Adjusted IFRS* Prediction Methods for UK COMMERCIAL PROPERTY REIT LIMITED

  1. An alternative benchmark rate designated as a non-contractually specified risk component that is not separately identifiable (see paragraphs 6.3.7(a) and B6.3.8) at the date it is designated shall be deemed to have met that requirement at that date, if, and only if, the entity reasonably expects the alternative benchmark rate will be separately identifiable within 24 months. The 24-month period applies to each alternative benchmark rate separately and starts from the date the entity designates the alternative benchmark rate as a non-contractually specified risk component for the first time (ie the 24- month period applies on a rate-by-rate basis).
  2. 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.
  3. When assessing a modified time value of money element, an entity must consider factors that could affect future contractual cash flows. For example, if an entity is assessing a bond with a five-year term and the variable interest rate is reset every six months to a five-year rate, the entity cannot conclude that the contractual cash flows are solely payments of principal and interest on the principal amount outstanding simply because the interest rate curve at the time of the assessment is such that the difference between a five-year interest rate and a six-month interest rate is not significant. Instead, the entity must also consider whether the relationship between the five-year interest rate and the six-month interest rate could change over the life of the instrument such that the contractual (undiscounted) cash flows over the life of the instrument could be significantly different from the (undiscounted) benchmark cash flows. However, an entity must consider only reasonably possible scenarios instead of every possible scenario. If an entity concludes that the contractual (undiscounted) cash flows could be significantly different from the (undiscounted) benchmark cash flows, the financial asset does not meet the condition in paragraphs 4.1.2(b) and 4.1.2A(b) and therefore cannot be measured at amortised cost or fair value through other comprehensive income.
  4. 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).

*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

UK COMMERCIAL PROPERTY REIT LIMITED assigned short-term B1 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Transductive Learning (ML) with Multiple Regression1,2,3,4 and conclude that the LON:UKCM stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period, the dominant strategy among neural network is: Buy

Financial State Forecast for LON:UKCM UK COMMERCIAL PROPERTY REIT LIMITED Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1Ba3
Operational Risk 7383
Market Risk4979
Technical Analysis7067
Fundamental Analysis7830
Risk Unsystematic4057

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 626 signals.

References

  1. Bera, A. M. L. Higgins (1997), "ARCH and bilinearity as competing models for nonlinear dependence," Journal of Business Economic Statistics, 15, 43–50.
  2. Banerjee, A., J. J. Dolado, J. W. Galbraith, D. F. Hendry (1993), Co-integration, Error-correction, and the Econometric Analysis of Non-stationary Data. Oxford: Oxford University Press.
  3. Belsley, D. A. (1988), "Modelling and forecast reliability," International Journal of Forecasting, 4, 427–447.
  4. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  5. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40
  6. Athey S, Blei D, Donnelly R, Ruiz F. 2017b. Counterfactual inference for consumer choice across many prod- uct categories. AEA Pap. Proc. 108:64–67
  7. Bai J. 2003. Inferential theory for factor models of large dimensions. Econometrica 71:135–71
Frequently Asked QuestionsQ: What is the prediction methodology for LON:UKCM stock?
A: LON:UKCM stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Multiple Regression
Q: Is LON:UKCM stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:UKCM Stock.
Q: Is UK COMMERCIAL PROPERTY REIT LIMITED stock a good investment?
A: The consensus rating for UK COMMERCIAL PROPERTY REIT LIMITED is Buy and assigned short-term B1 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of LON:UKCM stock?
A: The consensus rating for LON:UKCM is Buy.
Q: What is the prediction period for LON:UKCM stock?
A: The prediction period for LON:UKCM is (n+4 weeks)

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