Modelling A.I. in Economics

TGS Transportadora de Gas del Sur SA TGS Common Stock

Outlook: Transportadora de Gas del Sur SA TGS Common Stock assigned short-term Ba3 & long-term Ba3 forecasted stock rating.
Dominant Strategy : Hold
Time series to forecast n: 07 Dec 2022 for (n+1 year)
Methodology : Transfer Learning (ML)

Abstract

The stock market has been an attractive field for a large number of organizers and investors to derive useful predictions. Fundamental knowledge of stock market can be utilised with technical indicators to investigate different perspectives of the financial market; also, the influence of various events, financial news, and/or opinions on investors' decisions and hence, market trends have been observed. Such information can be exploited to make reliable predictions and achieve higher profitability. Computational intelligence has emerged with various deep neural network (DNN) techniques to address complex stock market problems.(Yu, P. and Yan, X., 2020. Stock price prediction based on deep neural networks. Neural Computing and Applications, 32(6), pp.1609-1628.) We evaluate Transportadora de Gas del Sur SA TGS Common Stock prediction models with Transfer Learning (ML) and Spearman Correlation1,2,3,4 and conclude that the TGS stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold TGS stock.

AC Investment Research

Key Points

  1. Understanding Buy, Sell, and Hold Ratings
  2. Investment Risk
  3. Trading Interaction

TGS Target Price Prediction Modeling Methodology

We consider Transportadora de Gas del Sur SA TGS Common Stock Decision Process with Transfer Learning (ML) where A is the set of discrete actions of TGS 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(Spearman Correlation)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(Transfer Learning (ML)) X S(n):→ (n+1 year) i = 1 n a i

n:Time series to forecast

p:Price signals of TGS 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?

TGS Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: TGS Transportadora de Gas del Sur SA TGS Common Stock
Time series to forecast n: 07 Dec 2022 for (n+1 year)

According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold TGS 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 Transportadora de Gas del Sur SA TGS Common Stock

  1. IFRS 17, issued in May 2017, amended paragraphs 2.1, B2.1, B2.4, B2.5 and B4.1.30, and added paragraph 3.3.5. Amendments to IFRS 17, issued in June 2020, further amended paragraph 2.1 and added paragraphs 7.2.36‒7.2.42. An entity shall apply those amendments when it applies IFRS 17.
  2. If changes are made in addition to those changes required by interest rate benchmark reform to the financial asset or financial liability designated in a hedging relationship (as described in paragraphs 5.4.6–5.4.8) or to the designation of the hedging relationship (as required by paragraph 6.9.1), an entity shall first apply the applicable requirements in this Standard to determine if those additional changes result in the discontinuation of hedge accounting. If the additional changes do not result in the discontinuation of hedge accounting, an entity shall amend the formal designation of the hedging relationship as specified in paragraph 6.9.1.
  3. A contractually specified inflation risk component of the cash flows of a recognised inflation-linked bond (assuming that there is no requirement to account for an embedded derivative separately) is separately identifiable and reliably measurable, as long as other cash flows of the instrument are not affected by the inflation risk component.
  4. For loan commitments, an entity considers changes in the risk of a default occurring on the loan to which a loan commitment relates. For financial guarantee contracts, an entity considers the changes in the risk that the specified debtor will default on the contract.

*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

Transportadora de Gas del Sur SA TGS Common Stock assigned short-term Ba3 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Transfer Learning (ML) with Spearman Correlation1,2,3,4 and conclude that the TGS stock is predictable in the short/long term. According to price forecasts for (n+1 year) period: The dominant strategy among neural network is to Hold TGS stock.

Financial State Forecast for TGS Transportadora de Gas del Sur SA TGS Common Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3Ba3
Operational Risk 4042
Market Risk5473
Technical Analysis6853
Fundamental Analysis8571
Risk Unsystematic8978

Prediction Confidence Score

Trust metric by Neural Network: 73 out of 100 with 701 signals.

References

  1. Chen X. 2007. Large sample sieve estimation of semi-nonparametric models. In Handbook of Econometrics, Vol. 6B, ed. JJ Heckman, EE Learner, pp. 5549–632. Amsterdam: Elsevier
  2. Imai K, Ratkovic M. 2013. Estimating treatment effect heterogeneity in randomized program evaluation. Ann. Appl. Stat. 7:443–70
  3. M. J. Hausknecht. Cooperation and Communication in Multiagent Deep Reinforcement Learning. PhD thesis, The University of Texas at Austin, 2016
  4. 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.
  5. Thompson WR. 1933. On the likelihood that one unknown probability exceeds another in view of the evidence of two samples. Biometrika 25:285–94
  6. Breiman L. 1993. Better subset selection using the non-negative garotte. Tech. Rep., Univ. Calif., Berkeley
  7. R. Rockafellar and S. Uryasev. Optimization of conditional value-at-risk. Journal of Risk, 2:21–42, 2000.
Frequently Asked QuestionsQ: What is the prediction methodology for TGS stock?
A: TGS stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Spearman Correlation
Q: Is TGS stock a buy or sell?
A: The dominant strategy among neural network is to Hold TGS Stock.
Q: Is Transportadora de Gas del Sur SA TGS Common Stock stock a good investment?
A: The consensus rating for Transportadora de Gas del Sur SA TGS Common Stock is Hold and assigned short-term Ba3 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of TGS stock?
A: The consensus rating for TGS is Hold.
Q: What is the prediction period for TGS stock?
A: The prediction period for TGS is (n+1 year)

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