Modelling A.I. in Economics

ERII Energy Recovery Inc. Common Stock

Outlook: Energy Recovery Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 26 Jan 2023 for (n+3 month)
Methodology : Statistical Inference (ML)

Abstract

Energy Recovery Inc. Common Stock prediction model is evaluated with Statistical Inference (ML) and Spearman Correlation1,2,3,4 and it is concluded that the ERII stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Buy

Key Points

  1. What statistical methods are used to analyze data?
  2. What are main components of Markov decision process?
  3. Market Signals

ERII Target Price Prediction Modeling Methodology

We consider Energy Recovery Inc. Common Stock Decision Process with Statistical Inference (ML) where A is the set of discrete actions of ERII 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(Statistical Inference (ML)) X S(n):→ (n+3 month) i = 1 n r i

n:Time series to forecast

p:Price signals of ERII 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?

ERII Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: ERII Energy Recovery Inc. Common Stock
Time series to forecast n: 26 Jan 2023 for (n+3 month)

According to price forecasts for (n+3 month) 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%

IFRS Reconciliation Adjustments for Energy Recovery Inc. 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. 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.
  3. 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.
  4. In some cases, the qualitative and non-statistical quantitative information available may be sufficient to determine that a financial instrument has met the criterion for the recognition of a loss allowance at an amount equal to lifetime expected credit losses. That is, the information does not need to flow through a statistical model or credit ratings process in order to determine whether there has been a significant increase in the credit risk of the financial instrument. In other cases, an entity may need to consider other information, including information from its statistical models or credit ratings processes.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Energy Recovery Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Energy Recovery Inc. Common Stock prediction model is evaluated with Statistical Inference (ML) and Spearman Correlation1,2,3,4 and it is concluded that the ERII stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Buy

ERII Energy Recovery Inc. Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Ba2
Balance SheetB2Baa2
Leverage RatiosCaa2Baa2
Cash FlowB3Baa2
Rates of Return and ProfitabilityB1B1

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 91 out of 100 with 846 signals.

References

  1. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
  2. Clements, M. P. D. F. Hendry (1996), "Intercept corrections and structural change," Journal of Applied Econometrics, 11, 475–494.
  3. Athey S, Wager S. 2017. Efficient policy learning. arXiv:1702.02896 [math.ST]
  4. R. Rockafellar and S. Uryasev. Conditional value-at-risk for general loss distributions. Journal of Banking and Finance, 26(7):1443 – 1471, 2002
  5. Blei DM, Lafferty JD. 2009. Topic models. In Text Mining: Classification, Clustering, and Applications, ed. A Srivastava, M Sahami, pp. 101–24. Boca Raton, FL: CRC Press
  6. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
  7. Varian HR. 2014. Big data: new tricks for econometrics. J. Econ. Perspect. 28:3–28
Frequently Asked QuestionsQ: What is the prediction methodology for ERII stock?
A: ERII stock prediction methodology: We evaluate the prediction models Statistical Inference (ML) and Spearman Correlation
Q: Is ERII stock a buy or sell?
A: The dominant strategy among neural network is to Buy ERII Stock.
Q: Is Energy Recovery Inc. Common Stock stock a good investment?
A: The consensus rating for Energy Recovery Inc. Common Stock is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of ERII stock?
A: The consensus rating for ERII is Buy.
Q: What is the prediction period for ERII stock?
A: The prediction period for ERII is (n+3 month)



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