Modelling A.I. in Economics

SOHON Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock

Outlook: Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 01 Feb 2023 for (n+8 weeks)
Methodology : Active Learning (ML)

Abstract

Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock prediction model is evaluated with Active Learning (ML) and ElasticNet Regression1,2,3,4 and it is concluded that the SOHON stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period, the dominant strategy among neural network is: Sell

Key Points

  1. Fundemental Analysis with Algorithmic Trading
  2. What are the most successful trading algorithms?
  3. Is now good time to invest?

SOHON Target Price Prediction Modeling Methodology

We consider Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock Decision Process with Active Learning (ML) where A is the set of discrete actions of SOHON 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(ElasticNet Regression)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(Active Learning (ML)) X S(n):→ (n+8 weeks) R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of SOHON 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?

SOHON Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: SOHON Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock
Time series to forecast n: 01 Feb 2023 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period, the dominant strategy among neural network is: Sell

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 Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock

  1. When measuring the fair values of the part that continues to be recognised and the part that is derecognised for the purposes of applying paragraph 3.2.13, an entity applies the fair value measurement requirements in IFRS 13 Fair Value Measurement in addition to paragraph 3.2.14.
  2. If, at the date of initial application, determining whether there has been a significant increase in credit risk since initial recognition would require undue cost or effort, an entity shall recognise a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised (unless that financial instrument is low credit risk at a reporting date, in which case paragraph 7.2.19(a) applies).
  3. For the purposes of the transition provisions in paragraphs 7.2.1, 7.2.3–7.2.28 and 7.3.2, the date of initial application is the date when an entity first applies those requirements of this Standard and must be the beginning of a reporting period after the issue of this Standard. Depending on the entity's chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.
  4. An equity method investment cannot be a hedged item in a fair value hedge. This is because the equity method recognises in profit or loss the investor's share of the investee's profit or loss, instead of changes in the investment's fair value. For a similar reason, an investment in a consolidated subsidiary cannot be a hedged item in a fair value hedge. This is because consolidation recognises in profit or loss the subsidiary's profit or loss, instead of changes in the investment's fair value. A hedge of a net investment in a foreign operation is different because it is a hedge of the foreign currency exposure, not a fair value hedge of the change in the value of the investment.

*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

Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock prediction model is evaluated with Active Learning (ML) and ElasticNet Regression1,2,3,4 and it is concluded that the SOHON stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period, the dominant strategy among neural network is: Sell

SOHON Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Baa2
Balance SheetB2C
Leverage RatiosB2Baa2
Cash FlowBa3Baa2
Rates of Return and ProfitabilityB2Baa2

*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 505 signals.

References

  1. L. Busoniu, R. Babuska, and B. D. Schutter. A comprehensive survey of multiagent reinforcement learning. IEEE Transactions of Systems, Man, and Cybernetics Part C: Applications and Reviews, 38(2), 2008.
  2. Ruiz FJ, Athey S, Blei DM. 2017. SHOPPER: a probabilistic model of consumer choice with substitutes and complements. arXiv:1711.03560 [stat.ML]
  3. M. Ono, M. Pavone, Y. Kuwata, and J. Balaram. Chance-constrained dynamic programming with application to risk-aware robotic space exploration. Autonomous Robots, 39(4):555–571, 2015
  4. Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
  5. J. Baxter and P. Bartlett. Infinite-horizon policy-gradient estimation. Journal of Artificial Intelligence Re- search, 15:319–350, 2001.
  6. K. Boda and J. Filar. Time consistent dynamic risk measures. Mathematical Methods of Operations Research, 63(1):169–186, 2006
  7. R. Sutton, D. McAllester, S. Singh, and Y. Mansour. Policy gradient methods for reinforcement learning with function approximation. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1057–1063, 2000
Frequently Asked QuestionsQ: What is the prediction methodology for SOHON stock?
A: SOHON stock prediction methodology: We evaluate the prediction models Active Learning (ML) and ElasticNet Regression
Q: Is SOHON stock a buy or sell?
A: The dominant strategy among neural network is to Sell SOHON Stock.
Q: Is Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock stock a good investment?
A: The consensus rating for Sotherly Hotels Inc. 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of SOHON stock?
A: The consensus rating for SOHON is Sell.
Q: What is the prediction period for SOHON stock?
A: The prediction period for SOHON is (n+8 weeks)

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