Modelling A.I. in Economics

ASB^F Stock Forecast: A Buy For The Next 3 Month

Outlook: Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 19 Jun 2023 for 3 Month
Methodology : Modular Neural Network (DNN Layer)

Abstract

Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F prediction model is evaluated with Modular Neural Network (DNN Layer) and Spearman Correlation1,2,3,4 and it is concluded that the ASB^F stock is predictable in the short/long term. In a modular neural network (MNN), a DNN layer is a type of module that is used to learn complex relationships between input and output data. DNN layers are made up of a series of artificial neurons, which are connected to each other by weighted edges. The weights of the edges are adjusted during training to minimize the error between the network's predictions and the desired output. DNN layers are used in a variety of MNN applications, including natural language processing, speech recognition, and machine translation. In natural language processing, DNN layers are used to extract features from text data, such as the sentiment of a sentence or the topic of a conversation. In speech recognition, DNN layers are used to convert audio data into text data. In machine translation, DNN layers are used to translate text from one language to another. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

Graph 25

Key Points

  1. How do predictive algorithms actually work?
  2. Can statistics predict the future?
  3. Reaction Function

ASB^F Target Price Prediction Modeling Methodology

We consider Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F Decision Process with Modular Neural Network (DNN Layer) where A is the set of discrete actions of ASB^F 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(Spearman Correlation)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(Modular Neural Network (DNN Layer)) X S(n):→ 3 Month i = 1 n r i

n:Time series to forecast

p:Price signals of ASB^F stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Modular Neural Network (DNN Layer)

In a modular neural network (MNN), a DNN layer is a type of module that is used to learn complex relationships between input and output data. DNN layers are made up of a series of artificial neurons, which are connected to each other by weighted edges. The weights of the edges are adjusted during training to minimize the error between the network's predictions and the desired output. DNN layers are used in a variety of MNN applications, including natural language processing, speech recognition, and machine translation. In natural language processing, DNN layers are used to extract features from text data, such as the sentiment of a sentence or the topic of a conversation. In speech recognition, DNN layers are used to convert audio data into text data. In machine translation, DNN layers are used to translate text from one language to another.

Spearman Correlation

Spearman correlation is a nonparametric measure of the strength and direction of association between two variables. It is a rank-based correlation, which means that it does not assume that the data is normally distributed. Spearman correlation is calculated by first ranking the data for each variable, and then calculating the Pearson correlation between the ranks.

 

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?

ASB^F Stock Forecast (Buy or Sell) for 3 Month

Sample Set: Neural Network
Stock/Index: ASB^F Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F
Time series to forecast n: 19 Jun 2023 for 3 Month

According to price forecasts for 3 Month 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 Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F

  1. If a component of the cash flows of a financial or a non-financial item is designated as the hedged item, that component must be less than or equal to the total cash flows of the entire item. However, all of the cash flows of the entire item may be designated as the hedged item and hedged for only one particular risk (for example, only for those changes that are attributable to changes in LIBOR or a benchmark commodity price).
  2. The accounting for the time value of options in accordance with paragraph 6.5.15 applies only to the extent that the time value relates to the hedged item (aligned time value). The time value of an option relates to the hedged item if the critical terms of the option (such as the nominal amount, life and underlying) are aligned with the hedged item. Hence, if the critical terms of the option and the hedged item are not fully aligned, an entity shall determine the aligned time value, ie how much of the time value included in the premium (actual time value) relates to the hedged item (and therefore should be treated in accordance with paragraph 6.5.15). An entity determines the aligned time value using the valuation of the option that would have critical terms that perfectly match the hedged item.
  3. If, at the date of initial application, it is impracticable (as defined in IAS 8) for an entity to assess whether the fair value of a prepayment feature was insignificant in accordance with paragraph B4.1.12(c) on the basis of the facts and circumstances that existed at the initial recognition of the financial asset, an entity shall assess the contractual cash flow characteristics of that financial asset on the basis of the facts and circumstances that existed at the initial recognition of the financial asset without taking into account the exception for prepayment features in paragraph B4.1.12. (See also paragraph 42S of IFRS 7.)
  4. An entity shall apply the impairment requirements in Section 5.5 retrospectively in accordance with IAS 8 subject to paragraphs 7.2.15 and 7.2.18–7.2.20.

*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

Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F is assigned short-term Ba1 & long-term Ba1 estimated rating. Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F prediction model is evaluated with Modular Neural Network (DNN Layer) and Spearman Correlation1,2,3,4 and it is concluded that the ASB^F stock is predictable in the short/long term. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

ASB^F Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementB2B3
Balance SheetBaa2C
Leverage RatiosBaa2Baa2
Cash FlowCBaa2
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: 81 out of 100 with 761 signals.

References

  1. Dietterich TG. 2000. Ensemble methods in machine learning. In Multiple Classifier Systems: First International Workshop, Cagliari, Italy, June 21–23, pp. 1–15. Berlin: Springer
  2. ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Can Neural Networks Predict Stock Market? (No. Stock Analysis). AC Investment Research.
  3. D. Bertsekas. Nonlinear programming. Athena Scientific, 1999.
  4. A. Y. Ng, D. Harada, and S. J. Russell. Policy invariance under reward transformations: Theory and application to reward shaping. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 278–287, 1999.
  5. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
  6. R. Rockafellar and S. Uryasev. Conditional value-at-risk for general loss distributions. Journal of Banking and Finance, 26(7):1443 – 1471, 2002
  7. S. Bhatnagar. An actor-critic algorithm with function approximation for discounted cost constrained Markov decision processes. Systems & Control Letters, 59(12):760–766, 2010
Frequently Asked QuestionsQ: What is the prediction methodology for ASB^F stock?
A: ASB^F stock prediction methodology: We evaluate the prediction models Modular Neural Network (DNN Layer) and Spearman Correlation
Q: Is ASB^F stock a buy or sell?
A: The dominant strategy among neural network is to Buy ASB^F Stock.
Q: Is Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F stock a good investment?
A: The consensus rating for Associated Banc-Corp Depositary Shares each representing a 1/40th interest in a share of Associated Banc-Corp 5.625% Non-Cumulative Perpetual Preferred Stock Series F is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of ASB^F stock?
A: The consensus rating for ASB^F is Buy.
Q: What is the prediction period for ASB^F stock?
A: The prediction period for ASB^F is 3 Month

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