Modelling A.I. in Economics

LON:IGV INCOME & GROWTH VCT (THE) PLC

Outlook: INCOME & GROWTH VCT (THE) PLC is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 15 Feb 2023 for (n+16 weeks)
Methodology : Supervised Machine Learning (ML)

Abstract

INCOME & GROWTH VCT (THE) PLC prediction model is evaluated with Supervised Machine Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 and it is concluded that the LON:IGV 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. Prediction Modeling
  2. How do predictive algorithms actually work?
  3. What are buy sell or hold recommendations?

LON:IGV Target Price Prediction Modeling Methodology

We consider INCOME & GROWTH VCT (THE) PLC Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of LON:IGV 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= 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(Supervised Machine Learning (ML)) X S(n):→ (n+16 weeks) R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of LON:IGV 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?

LON:IGV Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: LON:IGV INCOME & GROWTH VCT (THE) PLC
Time series to forecast n: 15 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 INCOME & GROWTH VCT (THE) PLC

  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. For the purpose of applying paragraphs B4.1.11(b) and B4.1.12(b), irrespective of the event or circumstance that causes the early termination of the contract, a party may pay or receive reasonable compensation for that early termination. For example, a party may pay or receive reasonable compensation when it chooses to terminate the contract early (or otherwise causes the early termination to occur).
  3. If a put option obligation written by an entity or call option right held by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at amortised cost, the associated liability is measured at its cost (ie the consideration received) adjusted for the amortisation of any difference between that cost and the gross carrying amount of the transferred asset at the expiration date of the option. For example, assume that the gross carrying amount of the asset on the date of the transfer is CU98 and that the consideration received is CU95. The gross carrying amount of the asset on the option exercise date will be CU100. The initial carrying amount of the associated liability is CU95 and the difference between CU95 and CU100 is recognised in profit or loss using the effective interest method. If the option is exercised, any difference between the carrying amount of the associated liability and the exercise price is recognised in profit or loss.
  4. An example of a fair value hedge is a hedge of exposure to changes in the fair value of a fixed-rate debt instrument arising from changes in interest rates. Such a hedge could be entered into by the issuer or by the holder.

*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

INCOME & GROWTH VCT (THE) PLC is assigned short-term Ba1 & long-term Ba1 estimated rating. INCOME & GROWTH VCT (THE) PLC prediction model is evaluated with Supervised Machine Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 and it is concluded that the LON:IGV 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

LON:IGV INCOME & GROWTH VCT (THE) PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2C
Balance SheetCBaa2
Leverage RatiosCaa2B1
Cash FlowCC
Rates of Return and ProfitabilityBaa2C

*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: 83 out of 100 with 781 signals.

References

  1. Babula, R. A. (1988), "Contemporaneous correlation and modeling Canada's imports of U.S. crops," Journal of Agricultural Economics Research, 41, 33–38.
  2. Athey S. 2017. Beyond prediction: using big data for policy problems. Science 355:483–85
  3. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  4. P. Marbach. Simulated-Based Methods for Markov Decision Processes. PhD thesis, Massachusetts Institute of Technology, 1998
  5. Swaminathan A, Joachims T. 2015. Batch learning from logged bandit feedback through counterfactual risk minimization. J. Mach. Learn. Res. 16:1731–55
  6. J. Ott. A Markov decision model for a surveillance application and risk-sensitive Markov decision processes. PhD thesis, Karlsruhe Institute of Technology, 2010.
  7. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
Frequently Asked QuestionsQ: What is the prediction methodology for LON:IGV stock?
A: LON:IGV stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Wilcoxon Rank-Sum Test
Q: Is LON:IGV stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:IGV Stock.
Q: Is INCOME & GROWTH VCT (THE) PLC stock a good investment?
A: The consensus rating for INCOME & GROWTH VCT (THE) PLC is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of LON:IGV stock?
A: The consensus rating for LON:IGV is Buy.
Q: What is the prediction period for LON:IGV stock?
A: The prediction period for LON:IGV is (n+16 weeks)

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