Modelling A.I. in Economics

LON:SST SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC (Forecast)

Outlook: SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 13 May 2023 for (n+1 year)
Methodology : Inductive Learning (ML)

Abstract

SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC prediction model is evaluated with Inductive Learning (ML) and Beta1,2,3,4 and it is concluded that the LON:SST stock is predictable in the short/long term. According to price forecasts for (n+1 year) period, the dominant strategy among neural network is: Buy

Key Points

  1. Should I buy stocks now or wait amid such uncertainty?
  2. What statistical methods are used to analyze data?
  3. What is prediction model?

LON:SST Target Price Prediction Modeling Methodology

We consider SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC Decision Process with Inductive Learning (ML) where A is the set of discrete actions of LON:SST 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(Beta)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+1 year) R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:SST 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:SST Stock Forecast (Buy or Sell) for (n+1 year)

Sample Set: Neural Network
Stock/Index: LON:SST SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC
Time series to forecast n: 13 May 2023 for (n+1 year)

According to price forecasts for (n+1 year) 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 SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

  1. When designating a group of items as the hedged item, or a combination of financial instruments as the hedging instrument, an entity shall prospectively cease applying paragraphs 6.8.4–6.8.6 to an individual item or financial instrument in accordance with paragraphs 6.8.9, 6.8.10, or 6.8.11, as relevant, when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the hedged risk and/or the timing and the amount of the interest rate benchmark-based cash flows of that item or financial instrument.
  2. IFRS 7 defines credit risk as 'the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation'. The requirement in paragraph 5.7.7(a) relates to the risk that the issuer will fail to perform on that particular liability. It does not necessarily relate to the creditworthiness of the issuer. For example, if an entity issues a collateralised liability and a non-collateralised liability that are otherwise identical, the credit risk of those two liabilities will be different, even though they are issued by the same entity. The credit risk on the collateralised liability will be less than the credit risk of the non-collateralised liability. The credit risk for a collateralised liability may be close to zero.
  3. IFRS 16, issued in January 2016, amended paragraphs 2.1, 5.5.15, B4.3.8, B5.5.34 and B5.5.46. An entity shall apply those amendments when it applies IFRS 16.
  4. An entity may manage and evaluate the performance of a group of financial liabilities or financial assets and financial liabilities in such a way that measuring that group at fair value through profit or loss results in more relevant information. The focus in this instance is on the way the entity manages and evaluates performance, instead of on the nature of its 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

SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC is assigned short-term Ba1 & long-term Ba1 estimated rating. SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC prediction model is evaluated with Inductive Learning (ML) and Beta1,2,3,4 and it is concluded that the LON:SST stock is predictable in the short/long term. According to price forecasts for (n+1 year) period, the dominant strategy among neural network is: Buy

LON:SST SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementB1B2
Balance SheetBaa2B3
Leverage RatiosBaa2Ba3
Cash FlowBaa2Caa2
Rates of Return and ProfitabilityB1C

*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: 72 out of 100 with 566 signals.

References

  1. Chernozhukov V, Escanciano JC, Ichimura H, Newey WK. 2016b. Locally robust semiparametric estimation. arXiv:1608.00033 [math.ST]
  2. V. Borkar. Stochastic approximation: a dynamical systems viewpoint. Cambridge University Press, 2008
  3. V. Borkar. Stochastic approximation: a dynamical systems viewpoint. Cambridge University Press, 2008
  4. Ashley, R. (1988), "On the relative worth of recent macroeconomic forecasts," International Journal of Forecasting, 4, 363–376.
  5. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
  6. Cheung, Y. M.D. Chinn (1997), "Further investigation of the uncertain unit root in GNP," Journal of Business and Economic Statistics, 15, 68–73.
  7. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:SST stock?
A: LON:SST stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Beta
Q: Is LON:SST stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:SST Stock.
Q: Is SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC stock a good investment?
A: The consensus rating for SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of LON:SST stock?
A: The consensus rating for LON:SST is Buy.
Q: What is the prediction period for LON:SST stock?
A: The prediction period for LON:SST is (n+1 year)

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