## Summary

Accurate prediction of stock market returns is a very challenging task due to volatile and non-linear nature of the financial stock markets. With the introduction of artificial intelligence and increased computational capabilities, programmed methods of prediction have proved to be more efficient in predicting stock prices.** We evaluate Mexico Fund Inc. (The) Common Stock prediction models with Reinforcement Machine Learning (ML) and Multiple Regression ^{1,2,3,4} and conclude that the MXF 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 MXF stock.**

## Key Points

- Buy, Sell and Hold Signals
- Trading Signals
- Which neural network is best for prediction?

## MXF Target Price Prediction Modeling Methodology

We consider Mexico Fund Inc. (The) Common Stock Decision Process with Reinforcement Machine Learning (ML) where A is the set of discrete actions of MXF 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}= $\begin{array}{cccc}{p}_{\mathrm{a}1}& {p}_{\mathrm{a}2}& \dots & {p}_{1n}\\ & \vdots \\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & \vdots \\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & \vdots \\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Reinforcement Machine Learning (ML)) X S(n):→ (n+8 weeks) $\sum _{i=1}^{n}\left({r}_{i}\right)$

n:Time series to forecast

p:Price signals of MXF 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?

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

**Sample Set:**Neural Network

**Stock/Index:**MXF Mexico Fund Inc. (The) Common Stock

**Time series to forecast n: 02 Dec 2022**for (n+8 weeks)

**According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Hold MXF 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 Mexico Fund Inc. (The) Common Stock

- At the date of initial application, an entity is permitted to make the designation in paragraph 2.5 for contracts that already exist on the date but only if it designates all similar contracts. The change in the net assets resulting from such designations shall be recognised in retained earnings at the date of initial application.
- If, at the date of initial application, it is impracticable (as defined in IAS 8) for an entity to assess a modified time value of money element in accordance with paragraphs B4.1.9B–B4.1.9D on the basis of the facts and circumstances that existed at the initial recognition of the financial asset, an entity shall assess the contractual cash flow characteristics of that financial asset on the basis of the facts and circumstances that existed at the initial recognition of the financial asset without taking into account the requirements related to the modification of the time value of money element in paragraphs B4.1.9B–B4.1.9D. (See also paragraph 42R of IFRS 7.)
- When determining whether the recognition of lifetime expected credit losses is required, an entity shall consider reasonable and supportable information that is available without undue cost or effort and that may affect the credit risk on a financial instrument in accordance with paragraph 5.5.17(c). An entity need not undertake an exhaustive search for information when determining whether credit risk has increased significantly since initial recognition.
- Fluctuation around a constant hedge ratio (and hence the related hedge ineffectiveness) cannot be reduced by adjusting the hedge ratio in response to each particular outcome. Hence, in such circumstances, the change in the extent of offset is a matter of measuring and recognising hedge ineffectiveness but does not require rebalancing.

*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

Mexico Fund Inc. (The) Common Stock assigned short-term B2 & long-term Ba3 forecasted stock rating.** We evaluate the prediction models Reinforcement Machine Learning (ML) with Multiple Regression ^{1,2,3,4} and conclude that the MXF 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 MXF stock.**

### Financial State Forecast for MXF Mexico Fund Inc. (The) Common Stock Options & Futures

Rating | Short-Term | Long-Term Senior |
---|---|---|

Outlook* | B2 | Ba3 |

Operational Risk | 34 | 76 |

Market Risk | 75 | 81 |

Technical Analysis | 44 | 73 |

Fundamental Analysis | 65 | 58 |

Risk Unsystematic | 62 | 32 |

### Prediction Confidence Score

## References

- R. Williams. Simple statistical gradient-following algorithms for connectionist reinforcement learning. Ma- chine learning, 8(3-4):229–256, 1992
- Robins J, Rotnitzky A. 1995. Semiparametric efficiency in multivariate regression models with missing data. J. Am. Stat. Assoc. 90:122–29
- Miller A. 2002. Subset Selection in Regression. New York: CRC Press
- Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
- Wooldridge JM. 2010. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press
- Greene WH. 2000. Econometric Analysis. Upper Saddle River, N J: Prentice Hall. 4th ed.
- Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35

## Frequently Asked Questions

Q: What is the prediction methodology for MXF stock?A: MXF stock prediction methodology: We evaluate the prediction models Reinforcement Machine Learning (ML) and Multiple Regression

Q: Is MXF stock a buy or sell?

A: The dominant strategy among neural network is to Hold MXF Stock.

Q: Is Mexico Fund Inc. (The) Common Stock stock a good investment?

A: The consensus rating for Mexico Fund Inc. (The) Common Stock is Hold and assigned short-term B2 & long-term Ba3 forecasted stock rating.

Q: What is the consensus rating of MXF stock?

A: The consensus rating for MXF is Hold.

Q: What is the prediction period for MXF stock?

A: The prediction period for MXF is (n+8 weeks)