Modelling A.I. in Economics

DOOR Masonite International Corporation Ordinary Shares (Canada)

Outlook: Masonite International Corporation Ordinary Shares (Canada) is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 04 Feb 2023 for (n+6 month)
Methodology : Modular Neural Network (Market Direction Analysis)

Abstract

Masonite International Corporation Ordinary Shares (Canada) prediction model is evaluated with Modular Neural Network (Market Direction Analysis) and Spearman Correlation1,2,3,4 and it is concluded that the DOOR stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Buy

Key Points

  1. What is the use of Markov decision process?
  2. Is Target price a good indicator?
  3. What is a prediction confidence?

DOOR Target Price Prediction Modeling Methodology

We consider Masonite International Corporation Ordinary Shares (Canada) Decision Process with Modular Neural Network (Market Direction Analysis) where A is the set of discrete actions of DOOR 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(Modular Neural Network (Market Direction Analysis)) X S(n):→ (n+6 month) r s rs

n:Time series to forecast

p:Price signals of DOOR 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?

DOOR Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: DOOR Masonite International Corporation Ordinary Shares (Canada)
Time series to forecast n: 04 Feb 2023 for (n+6 month)

According to price forecasts for (n+6 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 Masonite International Corporation Ordinary Shares (Canada)

  1. The purpose of estimating expected credit losses is neither to estimate a worstcase scenario nor to estimate the best-case scenario. Instead, an estimate of expected credit losses shall always reflect the possibility that a credit loss occurs and the possibility that no credit loss occurs even if the most likely outcome is no credit loss.
  2. If an entity originates a loan that bears an off-market interest rate (eg 5 per cent when the market rate for similar loans is 8 per cent), and receives an upfront fee as compensation, the entity recognises the loan at its fair value, ie net of the fee it receives.
  3. An entity is not required to restate prior periods to reflect the application of these amendments. The entity may restate prior periods if, and only if, it is possible without the use of hindsight. If an entity does not restate prior periods, the entity shall recognise any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application of these amendments in the opening retained earnings (or other component of equity, as appropriate) of the annual reporting period that includes the date of initial application of these amendments.
  4. The change in the value of the hedged item determined using a hypothetical derivative may also be used for the purpose of assessing whether a hedging relationship meets the hedge effectiveness requirements.

*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

Masonite International Corporation Ordinary Shares (Canada) is assigned short-term Ba1 & long-term Ba1 estimated rating. Masonite International Corporation Ordinary Shares (Canada) prediction model is evaluated with Modular Neural Network (Market Direction Analysis) and Spearman Correlation1,2,3,4 and it is concluded that the DOOR stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Buy

DOOR Masonite International Corporation Ordinary Shares (Canada) Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBa2C
Balance SheetBaa2Caa2
Leverage RatiosB3B1
Cash FlowBaa2C
Rates of Return and ProfitabilityBaa2B1

*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: 87 out of 100 with 699 signals.

References

  1. L. Prashanth and M. Ghavamzadeh. Actor-critic algorithms for risk-sensitive MDPs. In Proceedings of Advances in Neural Information Processing Systems 26, pages 252–260, 2013.
  2. Athey S, Imbens G, Wager S. 2016a. Efficient inference of average treatment effects in high dimensions via approximate residual balancing. arXiv:1604.07125 [math.ST]
  3. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Can stock prices be predicted?(SMI Index Stock Forecast). AC Investment Research Journal, 101(3).
  4. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  5. Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
  6. K. Boda, J. Filar, Y. Lin, and L. Spanjers. Stochastic target hitting time and the problem of early retirement. Automatic Control, IEEE Transactions on, 49(3):409–419, 2004
  7. N. B ̈auerle and J. Ott. Markov decision processes with average-value-at-risk criteria. Mathematical Methods of Operations Research, 74(3):361–379, 2011
Frequently Asked QuestionsQ: What is the prediction methodology for DOOR stock?
A: DOOR stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and Spearman Correlation
Q: Is DOOR stock a buy or sell?
A: The dominant strategy among neural network is to Buy DOOR Stock.
Q: Is Masonite International Corporation Ordinary Shares (Canada) stock a good investment?
A: The consensus rating for Masonite International Corporation Ordinary Shares (Canada) is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of DOOR stock?
A: The consensus rating for DOOR is Buy.
Q: What is the prediction period for DOOR stock?
A: The prediction period for DOOR is (n+6 month)

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