Modelling A.I. in Economics

OPP^B RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock (Forecast)

Outlook: RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 13 Apr 2023 for (n+6 month)
Methodology : Inductive Learning (ML)

Abstract

RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock prediction model is evaluated with Inductive Learning (ML) and ElasticNet Regression1,2,3,4 and it is concluded that the OPP^B stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Sell

Key Points

  1. Can machine learning predict?
  2. Trading Signals
  3. Investment Risk

OPP^B Target Price Prediction Modeling Methodology

We consider RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock Decision Process with Inductive Learning (ML) where A is the set of discrete actions of OPP^B 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(Inductive Learning (ML)) X S(n):→ (n+6 month) e x rx

n:Time series to forecast

p:Price signals of OPP^B 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?

OPP^B Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: OPP^B RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock
Time series to forecast n: 13 Apr 2023 for (n+6 month)

According to price forecasts for (n+6 month) 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 RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock

  1. Paragraph 6.3.6 states that in consolidated financial statements the foreign currency risk of a highly probable forecast intragroup transaction may qualify as a hedged item in a cash flow hedge, provided that the transaction is denominated in a currency other than the functional currency of the entity entering into that transaction and that the foreign currency risk will affect consolidated profit or loss. For this purpose an entity can be a parent, subsidiary, associate, joint arrangement or branch. If the foreign currency risk of a forecast intragroup transaction does not affect consolidated profit or loss, the intragroup transaction cannot qualify as a hedged item. This is usually the case for royalty payments, interest payments or management charges between members of the same group, unless there is a related external transaction. However, when the foreign currency risk of a forecast intragroup transaction will affect consolidated profit or loss, the intragroup transaction can qualify as a hedged item. An example is forecast sales or purchases of inventories between members of the same group if there is an onward sale of the inventory to a party external to the group. Similarly, a forecast intragroup sale of plant and equipment from the group entity that manufactured it to a group entity that will use the plant and equipment in its operations may affect consolidated profit or loss. This could occur, for example, because the plant and equipment will be depreciated by the purchasing entity and the amount initially recognised for the plant and equipment may change if the forecast intragroup transaction is denominated in a currency other than the functional currency of the purchasing entity.
  2. All investments in equity instruments and contracts on those instruments must be measured at fair value. However, in limited circumstances, cost may be an appropriate estimate of fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
  3. Fluctuation around a constant hedge ratio (and hence the related hedge ineffectiveness) cannot be reduced by adjusting the hedge ratio in response to each particular outcome. Hence, in such circumstances, the change in the extent of offset is a matter of measuring and recognising hedge ineffectiveness but does not require rebalancing.
  4. As with all fair value measurements, an entity's measurement method for determining the portion of the change in the liability's fair value that is attributable to changes in its credit risk must make maximum use of relevant observable inputs and minimum use of unobservable inputs.

*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

RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock prediction model is evaluated with Inductive Learning (ML) and ElasticNet Regression1,2,3,4 and it is concluded that the OPP^B stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Sell

OPP^B RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBa1C
Balance SheetB2C
Leverage RatiosCaa2B1
Cash FlowBaa2Baa2
Rates of Return and ProfitabilityBaa2Baa2

*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 739 signals.

References

  1. A. K. Agogino and K. Tumer. Analyzing and visualizing multiagent rewards in dynamic and stochastic environments. Journal of Autonomous Agents and Multi-Agent Systems, 17(2):320–338, 2008
  2. 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.
  3. ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Can Neural Networks Predict Stock Market? (No. Stock Analysis). AC Investment Research.
  4. Vilnis L, McCallum A. 2015. Word representations via Gaussian embedding. arXiv:1412.6623 [cs.CL]
  5. M. L. Littman. Markov games as a framework for multi-agent reinforcement learning. In Ma- chine Learning, Proceedings of the Eleventh International Conference, Rutgers University, New Brunswick, NJ, USA, July 10-13, 1994, pages 157–163, 1994
  6. Athey S. 2019. The impact of machine learning on economics. In The Economics of Artificial Intelligence: An Agenda, ed. AK Agrawal, J Gans, A Goldfarb. Chicago: Univ. Chicago Press. In press
  7. J. Baxter and P. Bartlett. Infinite-horizon policy-gradient estimation. Journal of Artificial Intelligence Re- search, 15:319–350, 2001.
Frequently Asked QuestionsQ: What is the prediction methodology for OPP^B stock?
A: OPP^B stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and ElasticNet Regression
Q: Is OPP^B stock a buy or sell?
A: The dominant strategy among neural network is to Sell OPP^B Stock.
Q: Is RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock stock a good investment?
A: The consensus rating for RiverNorth/DoubleLine Strategic Opportunity Fund Inc. 4.75% Series B Cumulative Preferred Stock is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of OPP^B stock?
A: The consensus rating for OPP^B is Sell.
Q: What is the prediction period for OPP^B stock?
A: The prediction period for OPP^B is (n+6 month)

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