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 : Wait until speculative trend diminishes
Time series to forecast n: 16 Mar 2023 for (n+16 weeks)
Methodology : Ensemble 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 Ensemble 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+16 weeks) period, the dominant strategy among neural network is: Wait until speculative trend diminishes

Key Points

  1. What is the best way to predict stock prices?
  2. What is a prediction confidence?
  3. Trading Interaction

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 Ensemble 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(Ensemble Learning (ML)) X S(n):→ (n+16 weeks) i = 1 n a 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+16 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: 16 Mar 2023 for (n+16 weeks)

According to price forecasts for (n+16 weeks) period, the dominant strategy among neural network is: Wait until speculative trend diminishes

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. Rebalancing does not apply if the risk management objective for a hedging relationship has changed. Instead, hedge accounting for that hedging relationship shall be discontinued (despite that an entity might designate a new hedging relationship that involves the hedging instrument or hedged item of the previous hedging relationship as described in paragraph B6.5.28).
  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. 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. A contractual cash flow characteristic does not affect the classification of the financial asset if it could have only a de minimis effect on the contractual cash flows of the financial asset. To make this determination, an entity must consider the possible effect of the contractual cash flow characteristic in each reporting period and cumulatively over the life of the financial instrument. In addition, if a contractual cash flow characteristic could have an effect on the contractual cash flows that is more than de minimis (either in a single reporting period or cumulatively) but that cash flow characteristic is not genuine, it does not affect the classification of a financial asset. A cash flow characteristic is not genuine if it affects the instrument's contractual cash flows only on the occurrence of an event that is extremely rare, highly abnormal and very unlikely to occur.

*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 Ensemble 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+16 weeks) period, the dominant strategy among neural network is: Wait until speculative trend diminishes

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 StatementB2Baa2
Balance SheetB1Ba3
Leverage RatiosBaa2C
Cash FlowBaa2C
Rates of Return and ProfitabilityB2Caa2

*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: 73 out of 100 with 653 signals.

References

  1. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  2. B. Derfer, N. Goodyear, K. Hung, C. Matthews, G. Paoni, K. Rollins, R. Rose, M. Seaman, and J. Wiles. Online marketing platform, August 17 2007. US Patent App. 11/893,765
  3. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., How do you know when a stock will go up or down?(STJ Stock Forecast). AC Investment Research Journal, 101(3).
  4. S. Bhatnagar and K. Lakshmanan. An online actor-critic algorithm with function approximation for con- strained Markov decision processes. Journal of Optimization Theory and Applications, 153(3):688–708, 2012.
  5. V. Borkar. An actor-critic algorithm for constrained Markov decision processes. Systems & Control Letters, 54(3):207–213, 2005.
  6. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
  7. Chernozhukov V, Escanciano JC, Ichimura H, Newey WK. 2016b. Locally robust semiparametric estimation. arXiv:1608.00033 [math.ST]
Frequently Asked QuestionsQ: What is the prediction methodology for WFC^Y stock?
A: WFC^Y stock prediction methodology: We evaluate the prediction models Ensemble 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 Wait until speculative trend diminishes 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 Wait until speculative trend diminishes 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 Wait until speculative trend diminishes.
Q: What is the prediction period for WFC^Y stock?
A: The prediction period for WFC^Y is (n+16 weeks)

Premium

  • Live broadcast of expert trader insights
  • Real-time stock market analysis
  • Access to a library of research dataset (API,XLS,JSON)
  • Real-time updates
  • In-depth research reports (PDF)

Login
This project is licensed under the license; additional terms may apply.