AEP American Electric Power Company Inc. Common Stock

Outlook: American Electric Power Company Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 09 Feb 2023 for (n+16 weeks)
Methodology : Deductive Inference (ML)

Abstract

American Electric Power Company Inc. Common Stock prediction model is evaluated with Deductive Inference (ML) and Wilcoxon Rank-Sum Test^1,2,3,4 and it is concluded that the AEP stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period, the dominant strategy among neural network is: Buy

Key Points

1. Can machine learning predict?
2. What are the most successful trading algorithms?
3. What is a prediction confidence?

AEP Target Price Prediction Modeling Methodology

We consider American Electric Power Company Inc. Common Stock Decision Process with Deductive Inference (ML) where A is the set of discrete actions of AEP 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(Wilcoxon Rank-Sum Test)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Deductive Inference (ML)) X S(n):→ (n+16 weeks) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of AEP 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?

AEP Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: AEP American Electric Power Company Inc. Common Stock
Time series to forecast n: 09 Feb 2023 for (n+16 weeks)

According to price forecasts for (n+16 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%

IFRS Reconciliation Adjustments for American Electric Power Company Inc. Common Stock

1. Changes in market conditions that give rise to market risk include changes in a benchmark interest rate, the price of another entity's financial instrument, a commodity price, a foreign exchange rate or an index of prices or rates.
2. To the extent that a transfer of a financial asset does not qualify for derecognition, the transferee does not recognise the transferred asset as its asset. The transferee derecognises the cash or other consideration paid and recognises a receivable from the transferor. If the transferor has both a right and an obligation to reacquire control of the entire transferred asset for a fixed amount (such as under a repurchase agreement), the transferee may measure its receivable at amortised cost if it meets the criteria in paragraph 4.1.2.
3. An entity that first applies IFRS 17 as amended in June 2020 at the same time it first applies this Standard shall apply paragraphs 7.2.1–7.2.28 instead of paragraphs 7.2.38–7.2.42.
4. There are two types of components of nominal amounts that can be designated as the hedged item in a hedging relationship: a component that is a proportion of an entire item or a layer component. The type of component changes the accounting outcome. An entity shall designate the component for accounting purposes consistently with its risk management objective.

*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

American Electric Power Company Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. American Electric Power Company Inc. Common Stock prediction model is evaluated with Deductive Inference (ML) and Wilcoxon Rank-Sum Test^1,2,3,4 and it is concluded that the AEP stock is predictable in the short/long term. According to price forecasts for (n+16 weeks) period, the dominant strategy among neural network is: Buy

AEP American Electric Power Company Inc. Common Stock Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba1	Ba1
Income Statement	Baa2	C
Balance Sheet	Ba1	Caa2
Leverage Ratios	Baa2	C
Cash Flow	Baa2	C
Rates of Return and Profitability	Ba3	Baa2

*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: 74 out of 100 with 865 signals.

References

1. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
2. LeCun Y, Bengio Y, Hinton G. 2015. Deep learning. Nature 521:436–44
3. Bewley, R. M. Yang (1998), "On the size and power of system tests for cointegration," Review of Economics and Statistics, 80, 675–679.
4. K. Tuyls and G. Weiss. Multiagent learning: Basics, challenges, and prospects. AI Magazine, 33(3): 41–52, 2012
5. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
6. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
7. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008

Frequently Asked Questions

Q: What is the prediction methodology for AEP stock?
A: AEP stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Wilcoxon Rank-Sum Test
Q: Is AEP stock a buy or sell?
A: The dominant strategy among neural network is to Buy AEP Stock.
Q: Is American Electric Power Company Inc. Common Stock stock a good investment?
A: The consensus rating for American Electric Power Company Inc. Common Stock is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of AEP stock?
A: The consensus rating for AEP is Buy.
Q: What is the prediction period for AEP stock?
A: The prediction period for AEP is (n+16 weeks)

Premium

• Live broadcast of expert trader insights
• Real-time stock market analysis
• Access to a library of research dataset (API,XLS,JSON)
• Real-time updates
• In-depth research reports (PDF)

Login