Modelling A.I. in Economics

MET Stock: What stocks make fastest money?

Outlook: MetLife Inc. Common Stock is assigned short-term Baa2 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised :
Dominant Strategy : Buy
Time series to forecast n: for 16 Weeks
Methodology : Multi-Task Learning (ML)
Hypothesis Testing : Independent T-Test
Surveillance : Major exchange and OTC

Abstract

MetLife Inc. Common Stock prediction model is evaluated with Multi-Task Learning (ML) and Independent T-Test1,2,3,4 and it is concluded that the MET stock is predictable in the short/long term. Multi-task learning (MTL) is a machine learning (ML) method in which multiple related tasks are learned simultaneously. This can be done by sharing features and weights between the tasks. MTL has been shown to improve the performance of each task, compared to learning each task independently. According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Buy

Graph 29

Key Points

  1. What is statistical models in machine learning?
  2. What are the most successful trading algorithms?
  3. Is it better to buy and sell or hold?

MET Target Price Prediction Modeling Methodology

We consider MetLife Inc. Common Stock Decision Process with Multi-Task Learning (ML) where A is the set of discrete actions of MET 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(Independent T-Test)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(Multi-Task Learning (ML)) X S(n):→ 16 Weeks R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of MET stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Multi-Task Learning (ML)

Multi-task learning (MTL) is a machine learning (ML) method in which multiple related tasks are learned simultaneously. This can be done by sharing features and weights between the tasks. MTL has been shown to improve the performance of each task, compared to learning each task independently.

Independent T-Test

An independent t-test is a statistical test that compares the means of two independent samples. In an independent t-test, the data points in each sample are not related to each other. The independent t-test is a parametric test, which means that it assumes that the data is normally distributed. The independent t-test is also a two-sample test, which means that it compares the means of two independent samples.

 

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?

MET Stock Forecast (Buy or Sell) for 16 Weeks

Sample Set: Neural Network
Stock/Index: MET MetLife Inc. Common Stock
Time series to forecast: 16 Weeks

According to price forecasts for 16 Weeks 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 MetLife Inc. Common Stock

  1. Interest Rate Benchmark Reform—Phase 2, which amended IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, issued in August 2020, added paragraphs 5.4.5–5.4.9, 6.8.13, Section 6.9 and paragraphs 7.2.43–7.2.46. An entity shall apply these amendments for annual periods beginning on or after 1 January 2021. Earlier application is permitted. If an entity applies these amendments for an earlier period, it shall disclose that fact.
  2. If there are changes in circumstances that affect hedge effectiveness, an entity may have to change the method for assessing whether a hedging relationship meets the hedge effectiveness requirements in order to ensure that the relevant characteristics of the hedging relationship, including the sources of hedge ineffectiveness, are still captured.
  3. If, in applying paragraph 7.2.44, an entity reinstates a discontinued hedging relationship, the entity shall read references in paragraphs 6.9.11 and 6.9.12 to the date the alternative benchmark rate is designated as a noncontractually specified risk component for the first time as referring to the date of initial application of these amendments (ie the 24-month period for that alternative benchmark rate designated as a non-contractually specified risk component begins from the date of initial application of these amendments).
  4. It would not be acceptable to designate only some of the financial assets and financial liabilities giving rise to the inconsistency as at fair value through profit or loss if to do so would not eliminate or significantly reduce the inconsistency and would therefore not result in more relevant information. However, it would be acceptable to designate only some of a number of similar financial assets or similar financial liabilities if doing so achieves a significant reduction (and possibly a greater reduction than other allowable designations) in the inconsistency. For example, assume an entity has a number of similar financial liabilities that sum to CU100 and a number of similar financial assets that sum to CU50 but are measured on a different basis. The entity may significantly reduce the measurement inconsistency by designating at initial recognition all of the assets but only some of the liabilities (for example, individual liabilities with a combined total of CU45) as at fair value through profit or loss. However, because designation as at fair value through profit or loss can be applied only to the whole of a financial instrument, the entity in this example must designate one or more liabilities in their entirety. It could not designate either a component of a liability (eg changes in value attributable to only one risk, such as changes in a benchmark interest rate) or a proportion (ie percentage) of a liability.

*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

MetLife Inc. Common Stock is assigned short-term Baa2 & long-term B3 estimated rating. MetLife Inc. Common Stock prediction model is evaluated with Multi-Task Learning (ML) and Independent T-Test1,2,3,4 and it is concluded that the MET stock is predictable in the short/long term. According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Buy

MET MetLife Inc. Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Baa2B3
Income StatementBa3C
Balance SheetBa2C
Leverage RatiosBaa2B2
Cash FlowBa2C
Rates of Return and ProfitabilityBaa2B1

*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: 76 out of 100 with 504 signals.

References

  1. Dimakopoulou M, Zhou Z, Athey S, Imbens G. 2018. Balanced linear contextual bandits. arXiv:1812.06227 [cs.LG]
  2. Li L, Chen S, Kleban J, Gupta A. 2014. Counterfactual estimation and optimization of click metrics for search engines: a case study. In Proceedings of the 24th International Conference on the World Wide Web, pp. 929–34. New York: ACM
  3. Wooldridge JM. 2010. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press
  4. C. Szepesvári. Algorithms for Reinforcement Learning. Synthesis Lectures on Artificial Intelligence and Machine Learning. Morgan & Claypool Publishers, 2010
  5. Barkan O. 2016. Bayesian neural word embedding. arXiv:1603.06571 [math.ST]
  6. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
  7. V. Borkar. Stochastic approximation: a dynamical systems viewpoint. Cambridge University Press, 2008
Frequently Asked QuestionsQ: What is the prediction methodology for MET stock?
A: MET stock prediction methodology: We evaluate the prediction models Multi-Task Learning (ML) and Independent T-Test
Q: Is MET stock a buy or sell?
A: The dominant strategy among neural network is to Buy MET Stock.
Q: Is MetLife Inc. Common Stock stock a good investment?
A: The consensus rating for MetLife Inc. Common Stock is Buy and is assigned short-term Baa2 & long-term B3 estimated rating.
Q: What is the consensus rating of MET stock?
A: The consensus rating for MET is Buy.
Q: What is the prediction period for MET stock?
A: The prediction period for MET is 16 Weeks

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