Is DUO Stock Expected to Go Up?

Outlook: Fangdd Network Group Ltd. American Depositary Shares is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Hold
Time series to forecast n: 19 Jun 2023 for 8 Weeks
Methodology : Transfer Learning (ML)

Summary

Fangdd Network Group Ltd. American Depositary Shares prediction model is evaluated with Transfer Learning (ML) and Ridge Regression^1,2,3,4 and it is concluded that the DUO stock is predictable in the short/long term. Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task. According to price forecasts for 8 Weeks period, the dominant strategy among neural network is: Hold

Key Points

What are the most successful trading algorithms?
How useful are statistical predictions?
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DUO Target Price Prediction Modeling Methodology

We consider Fangdd Network Group Ltd. American Depositary Shares Decision Process with Transfer Learning (ML) where A is the set of discrete actions of DUO 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(Ridge Regression)^5,6,7=

\begin{matrix} p_{a 1} & p_{a 2} & \dots & p_{1 n} \\ ⋮ \\ p_{j 1} & p_{j 2} & \dots & p_{j n} \\ ⋮ \\ p_{k 1} & p_{k 2} & \dots & p_{k n} \\ ⋮ \\ p_{n 1} & p_{n 2} & \dots & p_{n n} \end{matrix}

X R(Transfer Learning (ML)) X S(n):→ 8 Weeks

\vec{S} = (s_{1}, s_{2}, s_{3})

n:Time series to forecast

p:Price signals of DUO stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Transfer Learning (ML)

Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task.

Ridge Regression

Ridge regression is a type of regression analysis that adds a penalty to the least squares objective function in order to reduce the variance of the estimates. This is done by adding a term to the objective function that is proportional to the sum of the squares of the coefficients. The penalty term is called the "ridge" penalty, and it is controlled by a parameter called the "ridge constant". Ridge regression can be used to address the problem of multicollinearity in linear regression. Multicollinearity occurs when two or more independent variables are highly correlated. This can cause the standard errors of the coefficients to be large, and it can also cause the coefficients to be unstable. Ridge regression can help to reduce the standard errors of the coefficients and to make the coefficients more stable.

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?

DUO Stock Forecast (Buy or Sell) for 8 Weeks

Sample Set: Neural Network
Stock/Index: DUO Fangdd Network Group Ltd. American Depositary Shares
Time series to forecast n: 19 Jun 2023 for 8 Weeks

According to price forecasts for 8 Weeks 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 Fangdd Network Group Ltd. American Depositary Shares

Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraphs 4.2.1 and 5.7.5 as a consequential amendment derived from the amendment to IFRS 3. An entity shall apply that amendment prospectively to business combinations to which the amendment to IFRS 3 applies.
Adjusting the hedge ratio by decreasing the volume of the hedged item does not affect how the changes in the fair value of the hedging instrument are measured. The measurement of the changes in the value of the hedged item related to the volume that continues to be designated also remains unaffected. However, from the date of rebalancing, the volume by which the hedged item was decreased is no longer part of the hedging relationship. For example, if an entity originally hedged a volume of 100 tonnes of a commodity at a forward price of CU80 and reduces that volume by 10 tonnes on rebalancing, the hedged item after rebalancing would be 90 tonnes hedged at CU80. The 10 tonnes of the hedged item that are no longer part of the hedging relationship would be accounted for in accordance with the requirements for the discontinuation of hedge accounting (see paragraphs 6.5.6–6.5.7 and B6.5.22–B6.5.28).
If an entity has applied paragraph 7.2.6 then at the date of initial application the entity shall recognise any difference between the fair value of the entire hybrid contract at the date of initial application and the sum of the fair values of the components of the hybrid contract at the date of initial application in the opening retained earnings (or other component of equity, as appropriate) of the reporting period that includes the date of initial application.
The following example describes a situation in which an accounting mismatch would be created in profit or loss if the effects of changes in the credit risk of the liability were presented in other comprehensive income. A mortgage bank provides loans to customers and funds those loans by selling bonds with matching characteristics (eg amount outstanding, repayment profile, term and currency) in the market. The contractual terms of the loan permit the mortgage customer to prepay its loan (ie satisfy its obligation to the bank) by buying the corresponding bond at fair value in the market and delivering that bond to the mortgage bank. As a result of that contractual prepayment right, if the credit quality of the bond worsens (and, thus, the fair value of the mortgage bank's liability decreases), the fair value of the mortgage bank's loan asset also decreases. The change in the fair value of the asset reflects the mortgage customer's contractual right to prepay the mortgage loan by buying the underlying bond at fair value (which, in this example, has decreased) and delivering the bond to the mortgage bank. Consequently, the effects of changes in the credit risk of the liability (the bond) will be offset in profit or loss by a corresponding change in the fair value of a financial asset (the loan). If the effects of changes in the liability's credit risk were presented in other comprehensive income there would be an accounting mismatch in profit or loss. Consequently, the mortgage bank is required to present all changes in fair value of the liability (including the effects of changes in the liability's credit risk) in profit or loss.

*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

Fangdd Network Group Ltd. American Depositary Shares is assigned short-term Ba1 & long-term Ba1 estimated rating. Fangdd Network Group Ltd. American Depositary Shares prediction model is evaluated with Transfer Learning (ML) and Ridge Regression^1,2,3,4 and it is concluded that the DUO stock is predictable in the short/long term. According to price forecasts for 8 Weeks period, the dominant strategy among neural network is: Hold

DUO Fangdd Network Group Ltd. American Depositary Shares Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba1	Ba1
Income Statement	Baa2	Baa2
Balance Sheet	C	Caa2
Leverage Ratios	C	B3
Cash Flow	Baa2	Caa2
Rates of Return and Profitability	Baa2	C

*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: 77 out of 100 with 801 signals.

References

Chipman HA, George EI, McCulloch RE. 2010. Bart: Bayesian additive regression trees. Ann. Appl. Stat. 4:266–98
Chen, C. L. Liu (1993), "Joint estimation of model parameters and outlier effects in time series," Journal of the American Statistical Association, 88, 284–297.
Angrist JD, Pischke JS. 2008. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton, NJ: Princeton Univ. Press
Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
Robins J, Rotnitzky A. 1995. Semiparametric efficiency in multivariate regression models with missing data. J. Am. Stat. Assoc. 90:122–29
T. Morimura, M. Sugiyama, M. Kashima, H. Hachiya, and T. Tanaka. Nonparametric return distribution ap- proximation for reinforcement learning. In Proceedings of the 27th International Conference on Machine Learning, pages 799–806, 2010
E. van der Pol and F. A. Oliehoek. Coordinated deep reinforcement learners for traffic light control. NIPS Workshop on Learning, Inference and Control of Multi-Agent Systems, 2016.

Frequently Asked Questions

Q: What is the prediction methodology for DUO stock?
A: DUO stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Ridge Regression
Q: Is DUO stock a buy or sell?
A: The dominant strategy among neural network is to Hold DUO Stock.
Q: Is Fangdd Network Group Ltd. American Depositary Shares stock a good investment?
A: The consensus rating for Fangdd Network Group Ltd. American Depositary Shares is Hold and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of DUO stock?
A: The consensus rating for DUO is Hold.
Q: What is the prediction period for DUO stock?
A: The prediction period for DUO is 8 Weeks