Modelling A.I. in Economics

Is CLX Stock Buy or Sell?

Outlook: Clorox Company (The) Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 18 Jun 2023 for 1 Year
Methodology : Inductive Learning (ML)

Abstract

Clorox Company (The) Common Stock prediction model is evaluated with Inductive Learning (ML) and Statistical Hypothesis Testing1,2,3,4 and it is concluded that the CLX stock is predictable in the short/long term. Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Graph 15

Key Points

  1. How accurate is machine learning in stock market?
  2. Buy, Sell and Hold Signals
  3. Dominated Move

CLX Target Price Prediction Modeling Methodology

We consider Clorox Company (The) Common Stock Decision Process with Inductive Learning (ML) where A is the set of discrete actions of CLX 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(Statistical Hypothesis Testing)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):→ 1 Year R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of CLX stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Inductive Learning (ML)

Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses.

Statistical Hypothesis Testing

Statistical hypothesis testing is a process used to determine whether there is enough evidence to support a claim about a population based on a sample. The process involves making two hypotheses, a null hypothesis and an alternative hypothesis, and then collecting data and using statistical tests to determine which hypothesis is more likely to be true. The null hypothesis is the statement that there is no difference between the population and the sample. The alternative hypothesis is the statement that there is a difference between the population and the sample. The statistical test is used to calculate a p-value, which is the probability of obtaining the observed data or more extreme data if the null hypothesis is true. A p-value of less than 0.05 is typically considered to be statistically significant, which means that there is less than a 5% chance of obtaining the observed data or more extreme data if the null hypothesis is true.

 

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?

CLX Stock Forecast (Buy or Sell) for 1 Year

Sample Set: Neural Network
Stock/Index: CLX Clorox Company (The) Common Stock
Time series to forecast n: 18 Jun 2023 for 1 Year

According to price forecasts for 1 Year 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 Clorox Company (The) Common Stock

  1. 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.
  2. If an entity previously accounted for a derivative liability that is linked to, and must be settled by, delivery of an equity instrument that does not have a quoted price in an active market for an identical instrument (ie a Level 1 input) at cost in accordance with IAS 39, it shall measure that derivative liability at fair value at the date of initial application. Any difference between the previous carrying amount and the fair value shall be recognised in the opening retained earnings of the reporting period that includes the date of initial application.
  3. An entity shall assess whether contractual cash flows are solely payments of principal and interest on the principal amount outstanding for the currency in which the financial asset is denominated.
  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

Clorox Company (The) Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Clorox Company (The) Common Stock prediction model is evaluated with Inductive Learning (ML) and Statistical Hypothesis Testing1,2,3,4 and it is concluded that the CLX stock is predictable in the short/long term. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

CLX Clorox Company (The) Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Baa2
Balance SheetBa3B1
Leverage RatiosBaa2Caa2
Cash FlowBaa2Baa2
Rates of Return and ProfitabilityBa3Baa2

*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 600 signals.

References

  1. Efron B, Hastie T, Johnstone I, Tibshirani R. 2004. Least angle regression. Ann. Stat. 32:407–99
  2. Mikolov T, Sutskever I, Chen K, Corrado GS, Dean J. 2013b. Distributed representations of words and phrases and their compositionality. In Advances in Neural Information Processing Systems, Vol. 26, ed. Z Ghahramani, M Welling, C Cortes, ND Lawrence, KQ Weinberger, pp. 3111–19. San Diego, CA: Neural Inf. Process. Syst. Found.
  3. Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35
  4. Imbens GW, Rubin DB. 2015. Causal Inference in Statistics, Social, and Biomedical Sciences. Cambridge, UK: Cambridge Univ. Press
  5. Athey S, Mobius MM, Pál J. 2017c. The impact of aggregators on internet news consumption. Unpublished manuscript, Grad. School Bus., Stanford Univ., Stanford, CA
  6. Bottou L. 2012. Stochastic gradient descent tricks. In Neural Networks: Tricks of the Trade, ed. G Montavon, G Orr, K-R Müller, pp. 421–36. Berlin: Springer
  7. D. Bertsekas and J. Tsitsiklis. Neuro-dynamic programming. Athena Scientific, 1996.
Frequently Asked QuestionsQ: What is the prediction methodology for CLX stock?
A: CLX stock prediction methodology: We evaluate the prediction models Inductive Learning (ML) and Statistical Hypothesis Testing
Q: Is CLX stock a buy or sell?
A: The dominant strategy among neural network is to Sell CLX Stock.
Q: Is Clorox Company (The) Common Stock stock a good investment?
A: The consensus rating for Clorox Company (The) Common Stock is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of CLX stock?
A: The consensus rating for CLX is Sell.
Q: What is the prediction period for CLX stock?
A: The prediction period for CLX is 1 Year

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