Modelling A.I. in Economics

WFC^Y Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y

Outlook: Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 14 Feb 2023 for (n+8 weeks)
Methodology : Active Learning (ML)

Abstract

Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y prediction model is evaluated with Active Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 and it is concluded that the WFC^Y 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. What are buy sell or hold recommendations?
  2. How accurate is machine learning in stock market?
  3. What is the use of Markov decision process?

WFC^Y Target Price Prediction Modeling Methodology

We consider Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y Decision Process with Active Learning (ML) where A is the set of discrete actions of WFC^Y 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(Active Learning (ML)) X S(n):→ (n+8 weeks) i = 1 n s i

n:Time series to forecast

p:Price signals of WFC^Y 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?

WFC^Y Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: WFC^Y Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y
Time series to forecast n: 14 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 Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y

  1. To be eligible for designation as a hedged item, a risk component must be a separately identifiable component of the financial or the non-financial item, and the changes in the cash flows or the fair value of the item attributable to changes in that risk component must be reliably measurable.
  2. For some types of fair value hedges, the objective of the hedge is not primarily to offset the fair value change of the hedged item but instead to transform the cash flows of the hedged item. For example, an entity hedges the fair value interest rate risk of a fixed-rate debt instrument using an interest rate swap. The entity's hedge objective is to transform the fixed-interest cash flows into floating interest cash flows. This objective is reflected in the accounting for the hedging relationship by accruing the net interest accrual on the interest rate swap in profit or loss. In the case of a hedge of a net position (for example, a net position of a fixed-rate asset and a fixed-rate liability), this net interest accrual must be presented in a separate line item in the statement of profit or loss and other comprehensive income. This is to avoid the grossing up of a single instrument's net gains or losses into offsetting gross amounts and recognising them in different line items (for example, this avoids grossing up a net interest receipt on a single interest rate swap into gross interest revenue and gross interest expense).
  3. In almost every lending transaction the creditor's instrument is ranked relative to the instruments of the debtor's other creditors. An instrument that is subordinated to other instruments may have contractual cash flows that are payments of principal and interest on the principal amount outstanding if the debtor's non-payment is a breach of contract and the holder has a contractual right to unpaid amounts of principal and interest on the principal amount outstanding even in the event of the debtor's bankruptcy. For example, a trade receivable that ranks its creditor as a general creditor would qualify as having payments of principal and interest on the principal amount outstanding. This is the case even if the debtor issued loans that are collateralised, which in the event of bankruptcy would give that loan holder priority over the claims of the general creditor in respect of the collateral but does not affect the contractual right of the general creditor to unpaid principal and other amounts due.
  4. If an entity previously accounted at cost (in accordance with IAS 39), for an investment in an equity instrument that does not have a quoted price in an active market for an identical instrument (ie a Level 1 input) (or for a derivative asset that is linked to and must be settled by delivery of such an equity instrument) it shall measure that instrument at fair value at the date of initial application. Any difference between the previous carrying amount and the fair value shall be recognised in the opening retained earnings (or other component of equity, as appropriate) of the reporting period that includes the date of initial application.

*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

Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y is assigned short-term Ba1 & long-term Ba1 estimated rating. Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y prediction model is evaluated with Active Learning (ML) and Wilcoxon Rank-Sum Test1,2,3,4 and it is concluded that the WFC^Y 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

WFC^Y Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementCBaa2
Balance SheetCC
Leverage RatiosCB2
Cash FlowB3Caa2
Rates of Return and ProfitabilityBa3Baa2

*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 563 signals.

References

  1. M. L. Littman. Friend-or-foe q-learning in general-sum games. In Proceedings of the Eighteenth International Conference on Machine Learning (ICML 2001), Williams College, Williamstown, MA, USA, June 28 - July 1, 2001, pages 322–328, 2001
  2. M. Babes, E. M. de Cote, and M. L. Littman. Social reward shaping in the prisoner's dilemma. In 7th International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS 2008), Estoril, Portugal, May 12-16, 2008, Volume 3, pages 1389–1392, 2008.
  3. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
  4. E. Altman. Constrained Markov decision processes, volume 7. CRC Press, 1999
  5. Chernozhukov V, Escanciano JC, Ichimura H, Newey WK. 2016b. Locally robust semiparametric estimation. arXiv:1608.00033 [math.ST]
  6. Swaminathan A, Joachims T. 2015. Batch learning from logged bandit feedback through counterfactual risk minimization. J. Mach. Learn. Res. 16:1731–55
  7. D. Bertsekas. Min common/max crossing duality: A geometric view of conjugacy in convex optimization. Lab. for Information and Decision Systems, MIT, Tech. Rep. Report LIDS-P-2796, 2009
Frequently Asked QuestionsQ: What is the prediction methodology for WFC^Y stock?
A: WFC^Y stock prediction methodology: We evaluate the prediction models Active Learning (ML) and Wilcoxon Rank-Sum Test
Q: Is WFC^Y stock a buy or sell?
A: The dominant strategy among neural network is to Sell WFC^Y Stock.
Q: Is Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y stock a good investment?
A: The consensus rating for Wells Fargo & Company Depositary Shares each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock Series Y is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of WFC^Y stock?
A: The consensus rating for WFC^Y is Sell.
Q: What is the prediction period for WFC^Y stock?
A: The prediction period for WFC^Y is (n+8 weeks)



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