Modelling A.I. in Economics

BAC^P Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP

Outlook: Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 18 Mar 2023 for (n+16 weeks)
Methodology : Deductive Inference (ML)

Abstract

Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP prediction model is evaluated with Deductive Inference (ML) and Pearson Correlation1,2,3,4 and it is concluded that the BAC^P 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 we predict stock market using machine learning?
  2. Market Outlook
  3. Short/Long Term Stocks

BAC^P Target Price Prediction Modeling Methodology

We consider Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP Decision Process with Deductive Inference (ML) where A is the set of discrete actions of BAC^P 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(Pearson 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(Deductive Inference (ML)) X S(n):→ (n+16 weeks) i = 1 n a i

n:Time series to forecast

p:Price signals of BAC^P 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?

BAC^P Stock Forecast (Buy or Sell) for (n+16 weeks)

Sample Set: Neural Network
Stock/Index: BAC^P Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP
Time series to forecast n: 18 Mar 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 Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP

  1. Hedging relationships that qualified for hedge accounting in accordance with IAS 39 that also qualify for hedge accounting in accordance with the criteria of this Standard (see paragraph 6.4.1), after taking into account any rebalancing of the hedging relationship on transition (see paragraph 7.2.25(b)), shall be regarded as continuing hedging relationships.
  2. Expected credit losses are a probability-weighted estimate of credit losses (ie the present value of all cash shortfalls) over the expected life of the financial instrument. A cash shortfall is the difference between the cash flows that are due to an entity in accordance with the contract and the cash flows that the entity expects to receive. Because expected credit losses consider the amount and timing of payments, a credit loss arises even if the entity expects to be paid in full but later than when contractually due.
  3. If the group of items does not have any offsetting risk positions (for example, a group of foreign currency expenses that affect different line items in the statement of profit or loss and other comprehensive income that are hedged for foreign currency risk) then the reclassified hedging instrument gains or losses shall be apportioned to the line items affected by the hedged items. This apportionment shall be done on a systematic and rational basis and shall not result in the grossing up of the net gains or losses arising from a single hedging instrument.
  4. Paragraph 5.5.4 requires that lifetime expected credit losses are recognised on all financial instruments for which there has been significant increases in credit risk since initial recognition. In order to meet this objective, if an entity is not able to group financial instruments for which the credit risk is considered to have increased significantly since initial recognition based on shared credit risk characteristics, the entity should recognise lifetime expected credit losses on a portion of the financial assets for which credit risk is deemed to have increased significantly. The aggregation of financial instruments to assess whether there are changes in credit risk on a collective basis may change over time as new information becomes available on groups of, or individual, financial instruments.

*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

Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP is assigned short-term Ba1 & long-term Ba1 estimated rating. Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP prediction model is evaluated with Deductive Inference (ML) and Pearson Correlation1,2,3,4 and it is concluded that the BAC^P 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

BAC^P Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2B1
Balance SheetCaa2Baa2
Leverage RatiosCBaa2
Cash FlowB3Baa2
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: 80 out of 100 with 785 signals.

References

  1. Artis, M. J. W. Zhang (1990), "BVAR forecasts for the G-7," International Journal of Forecasting, 6, 349–362.
  2. Chen X. 2007. Large sample sieve estimation of semi-nonparametric models. In Handbook of Econometrics, Vol. 6B, ed. JJ Heckman, EE Learner, pp. 5549–632. Amsterdam: Elsevier
  3. Christou, C., P. A. V. B. Swamy G. S. Tavlas (1996), "Modelling optimal strategies for the allocation of wealth in multicurrency investments," International Journal of Forecasting, 12, 483–493.
  4. Firth JR. 1957. A synopsis of linguistic theory 1930–1955. In Studies in Linguistic Analysis (Special Volume of the Philological Society), ed. JR Firth, pp. 1–32. Oxford, UK: Blackwell
  5. Byron, R. P. O. Ashenfelter (1995), "Predicting the quality of an unborn grange," Economic Record, 71, 40–53.
  6. Kitagawa T, Tetenov A. 2015. Who should be treated? Empirical welfare maximization methods for treatment choice. Tech. Rep., Cent. Microdata Methods Pract., Inst. Fiscal Stud., London
  7. Andrews, D. W. K. W. Ploberger (1994), "Optimal tests when a nuisance parameter is present only under the alternative," Econometrica, 62, 1383–1414.
Frequently Asked QuestionsQ: What is the prediction methodology for BAC^P stock?
A: BAC^P stock prediction methodology: We evaluate the prediction models Deductive Inference (ML) and Pearson Correlation
Q: Is BAC^P stock a buy or sell?
A: The dominant strategy among neural network is to Buy BAC^P Stock.
Q: Is Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP stock a good investment?
A: The consensus rating for Bank of America Corporation Depositary Shares each representing a 1/1000th interest in a share of 4.125% Non-Cumulative Preferred Stock Series PP is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of BAC^P stock?
A: The consensus rating for BAC^P is Buy.
Q: What is the prediction period for BAC^P stock?
A: The prediction period for BAC^P is (n+16 weeks)

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