Modelling A.I. in Economics

LON:RMMC RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED

Outlook: RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 11 May 2023 for (n+3 month)
Methodology : Ensemble Learning (ML)

Abstract

RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED prediction model is evaluated with Ensemble Learning (ML) and Polynomial Regression1,2,3,4 and it is concluded that the LON:RMMC stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Sell

Key Points

  1. How do you know when a stock will go up or down?
  2. How accurate is machine learning in stock market?
  3. Is Target price a good indicator?

LON:RMMC Target Price Prediction Modeling Methodology

We consider RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED Decision Process with Ensemble Learning (ML) where A is the set of discrete actions of LON:RMMC 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(Polynomial 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(Ensemble Learning (ML)) X S(n):→ (n+3 month) r s rs

n:Time series to forecast

p:Price signals of LON:RMMC 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?

LON:RMMC Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: LON:RMMC RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED
Time series to forecast n: 11 May 2023 for (n+3 month)

According to price forecasts for (n+3 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 RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED

  1. An embedded prepayment option in an interest-only or principal-only strip is closely related to the host contract provided the host contract (i) initially resulted from separating the right to receive contractual cash flows of a financial instrument that, in and of itself, did not contain an embedded derivative, and (ii) does not contain any terms not present in the original host debt contract.
  2. For a discontinued hedging relationship, when the interest rate benchmark on which the hedged future cash flows had been based is changed as required by interest rate benchmark reform, for the purpose of applying paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, the amount accumulated in the cash flow hedge reserve for that hedging relationship shall be deemed to be based on the alternative benchmark rate on which the hedged future cash flows will be based.
  3. An embedded prepayment option in an interest-only or principal-only strip is closely related to the host contract provided the host contract (i) initially resulted from separating the right to receive contractual cash flows of a financial instrument that, in and of itself, did not contain an embedded derivative, and (ii) does not contain any terms not present in the original host debt contract.
  4. An entity that first applies IFRS 17 as amended in June 2020 at the same time it first applies this Standard shall apply paragraphs 7.2.1–7.2.28 instead of paragraphs 7.2.38–7.2.42.

*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

RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED is assigned short-term Ba1 & long-term Ba1 estimated rating. RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED prediction model is evaluated with Ensemble Learning (ML) and Polynomial Regression1,2,3,4 and it is concluded that the LON:RMMC stock is predictable in the short/long term. According to price forecasts for (n+3 month) period, the dominant strategy among neural network is: Sell

LON:RMMC RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementCaa2C
Balance SheetBaa2Baa2
Leverage RatiosCB2
Cash FlowB3B1
Rates of Return and ProfitabilityCaa2C

*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 588 signals.

References

  1. K. Tuyls and G. Weiss. Multiagent learning: Basics, challenges, and prospects. AI Magazine, 33(3): 41–52, 2012
  2. Bengio Y, Ducharme R, Vincent P, Janvin C. 2003. A neural probabilistic language model. J. Mach. Learn. Res. 3:1137–55
  3. G. Shani, R. Brafman, and D. Heckerman. An MDP-based recommender system. In Proceedings of the Eigh- teenth conference on Uncertainty in artificial intelligence, pages 453–460. Morgan Kaufmann Publishers Inc., 2002
  4. Chernozhukov V, Chetverikov D, Demirer M, Duflo E, Hansen C, Newey W. 2017. Double/debiased/ Neyman machine learning of treatment effects. Am. Econ. Rev. 107:261–65
  5. Ruiz FJ, Athey S, Blei DM. 2017. SHOPPER: a probabilistic model of consumer choice with substitutes and complements. arXiv:1711.03560 [stat.ML]
  6. Farrell MH, Liang T, Misra S. 2018. Deep neural networks for estimation and inference: application to causal effects and other semiparametric estimands. arXiv:1809.09953 [econ.EM]
  7. Abadie A, Cattaneo MD. 2018. Econometric methods for program evaluation. Annu. Rev. Econ. 10:465–503
Frequently Asked QuestionsQ: What is the prediction methodology for LON:RMMC stock?
A: LON:RMMC stock prediction methodology: We evaluate the prediction models Ensemble Learning (ML) and Polynomial Regression
Q: Is LON:RMMC stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:RMMC Stock.
Q: Is RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED stock a good investment?
A: The consensus rating for RIVER AND MERCANTILE UK MICRO CAP INVESTMENT COMPANY LIMITED is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of LON:RMMC stock?
A: The consensus rating for LON:RMMC is Sell.
Q: What is the prediction period for LON:RMMC stock?
A: The prediction period for LON:RMMC is (n+3 month)



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