23andMe Holding Co. Class A Common Stock Research Report

## Summary

The search for models to predict the prices of financial markets is still a highly researched topic, despite major related challenges. The prices of financial assets are non-linear, dynamic, and chaotic; thus, they are financial time series that are difficult to predict. Among the latest techniques, machine learning models are some of the most researched, given their capabilities for recognizing complex patterns in various applications. We evaluate 23andMe Holding Co. Class A Common Stock prediction models with Modular Neural Network (Market Direction Analysis) and Logistic Regression1,2,3,4 and conclude that the ME stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold ME stock.

## Key Points

1. What statistical methods are used to analyze data?
2. What is prediction in deep learning?
3. What is statistical models in machine learning?

## ME Target Price Prediction Modeling Methodology

We consider 23andMe Holding Co. Class A Common Stock Decision Process with Modular Neural Network (Market Direction Analysis) where A is the set of discrete actions of ME 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(Logistic Regression)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (Market Direction Analysis)) X S(n):→ (n+8 weeks) $\begin{array}{l}\int {e}^{x}\mathrm{rx}\end{array}$

n:Time series to forecast

p:Price signals of ME 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?

## ME Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: ME 23andMe Holding Co. Class A Common Stock
Time series to forecast n: 03 Dec 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold ME 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 23andMe Holding Co. Class A Common Stock

1. An entity shall apply Annual Improvements to IFRS Standards 2018–2020 to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.
2. When measuring a loss allowance for a lease receivable, the cash flows used for determining the expected credit losses should be consistent with the cash flows used in measuring the lease receivable in accordance with IFRS 16 Leases.
3. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss. However, the entity may transfer the cumulative gain or loss within equity.
4. The accounting for the time value of options in accordance with paragraph 6.5.15 applies only to the extent that the time value relates to the hedged item (aligned time value). The time value of an option relates to the hedged item if the critical terms of the option (such as the nominal amount, life and underlying) are aligned with the hedged item. Hence, if the critical terms of the option and the hedged item are not fully aligned, an entity shall determine the aligned time value, ie how much of the time value included in the premium (actual time value) relates to the hedged item (and therefore should be treated in accordance with paragraph 6.5.15). An entity determines the aligned time value using the valuation of the option that would have critical terms that perfectly match the hedged item.

*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

23andMe Holding Co. Class A Common Stock assigned short-term B1 & long-term B1 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Market Direction Analysis) with Logistic Regression1,2,3,4 and conclude that the ME stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold ME stock.

### Financial State Forecast for ME 23andMe Holding Co. Class A Common Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B1
Operational Risk 5265
Market Risk7189
Technical Analysis5637
Fundamental Analysis5749
Risk Unsystematic6341

### Prediction Confidence Score

Trust metric by Neural Network: 92 out of 100 with 585 signals.

## References

1. J. Spall. Multivariate stochastic approximation using a simultaneous perturbation gradient approximation. IEEE Transactions on Automatic Control, 37(3):332–341, 1992.
2. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
3. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
4. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40
5. Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
6. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
7. Breiman L. 2001a. Random forests. Mach. Learn. 45:5–32
Frequently Asked QuestionsQ: What is the prediction methodology for ME stock?
A: ME stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Logistic Regression
Q: Is ME stock a buy or sell?
A: The dominant strategy among neural network is to Hold ME Stock.
Q: Is 23andMe Holding Co. Class A Common Stock stock a good investment?
A: The consensus rating for 23andMe Holding Co. Class A Common Stock is Hold and assigned short-term B1 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of ME stock?
A: The consensus rating for ME is Hold.
Q: What is the prediction period for ME stock?
A: The prediction period for ME is (n+8 weeks)