Modelling A.I. in Economics

ABV Stock Forecast: A Hold For The Next 6 Month

Outlook: ADVANCED BRAKING TECHNOLOGY LTD is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Hold
Time series to forecast n: 06 Jun 2023 for 6 Month
Methodology : Inductive Learning (ML)

Abstract

ADVANCED BRAKING TECHNOLOGY LTD prediction model is evaluated with Inductive Learning (ML) and Lasso Regression1,2,3,4 and it is concluded that the ABV stock is predictable in the short/long term. According to price forecasts for 6 Month period, the dominant strategy among neural network is: Hold

Key Points

  1. How can neural networks improve predictions?
  2. Which neural network is best for prediction?
  3. Is Target price a good indicator?

ABV Target Price Prediction Modeling Methodology

We consider ADVANCED BRAKING TECHNOLOGY LTD Decision Process with Inductive Learning (ML) where A is the set of discrete actions of ABV 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(Lasso 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):→ 6 Month i = 1 n s i

n:Time series to forecast

p:Price signals of ABV 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?

ABV Stock Forecast (Buy or Sell) for 6 Month

Sample Set: Neural Network
Stock/Index: ABV ADVANCED BRAKING TECHNOLOGY LTD
Time series to forecast n: 06 Jun 2023 for 6 Month

According to price forecasts for 6 Month period, the dominant strategy among neural network is: Hold

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 ADVANCED BRAKING TECHNOLOGY LTD

  1. For the purpose of applying the requirement in paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, an entity shall assume that the interest rate benchmark on which the hedged cash flows (contractually or non-contractually specified) are based is not altered as a result of interest rate benchmark reform.
  2. When designating a hedging relationship and on an ongoing basis, an entity shall analyse the sources of hedge ineffectiveness that are expected to affect the hedging relationship during its term. This analysis (including any updates in accordance with paragraph B6.5.21 arising from rebalancing a hedging relationship) is the basis for the entity's assessment of meeting the hedge effectiveness requirements.
  3. An entity's risk management is the main source of information to perform the assessment of whether a hedging relationship meets the hedge effectiveness requirements. This means that the management information (or analysis) used for decision-making purposes can be used as a basis for assessing whether a hedging relationship meets the hedge effectiveness requirements.
  4. The fair value of a financial instrument at initial recognition is normally the transaction price (ie the fair value of the consideration given or received, see also paragraph B5.1.2A and IFRS 13). However, if part of the consideration given or received is for something other than the financial instrument, an entity shall measure the fair value of the financial instrument. For example, the fair value of a long-term loan or receivable that carries no interest can be measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (similar as to currency, term, type of interest rate and other factors) with a similar credit rating. Any additional amount lent is an expense or a reduction of income unless it qualifies for recognition as some other type of asset.

*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

ADVANCED BRAKING TECHNOLOGY LTD is assigned short-term Ba1 & long-term Ba1 estimated rating. ADVANCED BRAKING TECHNOLOGY LTD prediction model is evaluated with Inductive Learning (ML) and Lasso Regression1,2,3,4 and it is concluded that the ABV stock is predictable in the short/long term. According to price forecasts for 6 Month period, the dominant strategy among neural network is: Hold

ABV ADVANCED BRAKING TECHNOLOGY LTD Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2B2
Balance SheetB2Baa2
Leverage RatiosB3Ba2
Cash FlowB3B2
Rates of Return and ProfitabilityBaa2Ba3

*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: 88 out of 100 with 863 signals.

References

  1. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  2. Künzel S, Sekhon J, Bickel P, Yu B. 2017. Meta-learners for estimating heterogeneous treatment effects using machine learning. arXiv:1706.03461 [math.ST]
  3. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
  4. Belsley, D. A. (1988), "Modelling and forecast reliability," International Journal of Forecasting, 4, 427–447.
  5. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
  6. G. J. Laurent, L. Matignon, and N. L. Fort-Piat. The world of independent learners is not Markovian. Int. J. Know.-Based Intell. Eng. Syst., 15(1):55–64, 2011
  7. M. Petrik and D. Subramanian. An approximate solution method for large risk-averse Markov decision processes. In Proceedings of the 28th International Conference on Uncertainty in Artificial Intelligence, 2012.
Frequently Asked QuestionsQ: What is the prediction methodology for ABV stock?
A: ABV stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Lasso Regression
Q: Is ABV stock a buy or sell?
A: The dominant strategy among neural network is to Hold ABV Stock.
Q: Is ADVANCED BRAKING TECHNOLOGY LTD stock a good investment?
A: The consensus rating for ADVANCED BRAKING TECHNOLOGY LTD is Hold and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of ABV stock?
A: The consensus rating for ABV is Hold.
Q: What is the prediction period for ABV stock?
A: The prediction period for ABV is 6 Month

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