Modelling A.I. in Economics

MNP Stock Forecast: A Buy For The Next 8 Weeks

Outlook: Western Asset Municipal Partners Fund Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 19 Jun 2023 for 8 Weeks
Methodology : Transfer Learning (ML)

Abstract

Western Asset Municipal Partners Fund Inc. Common Stock prediction model is evaluated with Transfer Learning (ML) and Wilcoxon Sign-Rank Test1,2,3,4 and it is concluded that the MNP 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: Buy

Graph 7

Key Points

  1. Nash Equilibria
  2. Dominated Move
  3. What statistical methods are used to analyze data?

MNP Target Price Prediction Modeling Methodology

We consider Western Asset Municipal Partners Fund Inc. Common Stock Decision Process with Transfer Learning (ML) where A is the set of discrete actions of MNP 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(Wilcoxon Sign-Rank 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(Transfer Learning (ML)) X S(n):→ 8 Weeks R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of MNP 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.

Wilcoxon Sign-Rank Test

The Wilcoxon rank-sum test, also known as the Mann-Whitney U test, is a non-parametric test that is used to compare the medians of two independent samples. It is a rank-based test, which means that it does not assume that the data is normally distributed. The Wilcoxon rank-sum test is calculated by first ranking the data from both samples, and then finding the sum of the ranks for one of the samples. The Wilcoxon rank-sum test statistic is then calculated by subtracting the sum of the ranks for one sample from the sum of the ranks for the other sample. The p-value for the Wilcoxon rank-sum test is calculated using a table of critical values. The p-value is the probability of obtaining a test statistic at least as extreme as the one observed, assuming that 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?

MNP Stock Forecast (Buy or Sell) for 8 Weeks

Sample Set: Neural Network
Stock/Index: MNP Western Asset Municipal Partners Fund Inc. Common Stock
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: 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 Western Asset Municipal Partners Fund Inc. Common Stock

  1. For floating-rate financial assets and floating-rate financial liabilities, periodic re-estimation of cash flows to reflect the movements in the market rates of interest alters the effective interest rate. If a floating-rate financial asset or a floating-rate financial liability is recognised initially at an amount equal to the principal receivable or payable on maturity, re-estimating the future interest payments normally has no significant effect on the carrying amount of the asset or the liability.
  2. In some jurisdictions, the government or a regulatory authority sets interest rates. For example, such government regulation of interest rates may be part of a broad macroeconomic policy or it may be introduced to encourage entities to invest in a particular sector of the economy. In some of these cases, the objective of the time value of money element is not to provide consideration for only the passage of time. However, despite paragraphs B4.1.9A–B4.1.9D, a regulated interest rate shall be considered a proxy for the time value of money element for the purpose of applying the condition in paragraphs 4.1.2(b) and 4.1.2A(b) if that regulated interest rate provides consideration that is broadly consistent with the passage of time and does not provide exposure to risks or volatility in the contractual cash flows that are inconsistent with a basic lending arrangement.
  3. Annual Improvements to IFRS Standards 2018–2020, issued in May 2020, added paragraphs 7.2.35 and B3.3.6A and amended paragraph B3.3.6. An entity shall apply that amendment for annual reporting periods beginning on or after 1 January 2022. Earlier application is permitted. If an entity applies the amendment for an earlier period, it shall disclose that fact.
  4. If an entity originates a loan that bears an off-market interest rate (eg 5 per cent when the market rate for similar loans is 8 per cent), and receives an upfront fee as compensation, the entity recognises the loan at its fair value, ie net of the fee it receives.

*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

Western Asset Municipal Partners Fund Inc. Common Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Western Asset Municipal Partners Fund Inc. Common Stock prediction model is evaluated with Transfer Learning (ML) and Wilcoxon Sign-Rank Test1,2,3,4 and it is concluded that the MNP stock is predictable in the short/long term. According to price forecasts for 8 Weeks period, the dominant strategy among neural network is: Buy

MNP Western Asset Municipal Partners Fund Inc. Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBa2B3
Balance SheetBa2Caa2
Leverage RatiosB1Ba3
Cash FlowCaa2Baa2
Rates of Return and ProfitabilityBa2Baa2

*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: 85 out of 100 with 711 signals.

References

  1. Greene WH. 2000. Econometric Analysis. Upper Saddle River, N J: Prentice Hall. 4th ed.
  2. Doudchenko N, Imbens GW. 2016. Balancing, regression, difference-in-differences and synthetic control methods: a synthesis. NBER Work. Pap. 22791
  3. Breiman L. 2001a. Random forests. Mach. Learn. 45:5–32
  4. Abadie A, Imbens GW. 2011. Bias-corrected matching estimators for average treatment effects. J. Bus. Econ. Stat. 29:1–11
  5. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
  6. Bessler, D. A. S. W. Fuller (1993), "Cointegration between U.S. wheat markets," Journal of Regional Science, 33, 481–501.
  7. M. L. Littman. Markov games as a framework for multi-agent reinforcement learning. In Ma- chine Learning, Proceedings of the Eleventh International Conference, Rutgers University, New Brunswick, NJ, USA, July 10-13, 1994, pages 157–163, 1994
Frequently Asked QuestionsQ: What is the prediction methodology for MNP stock?
A: MNP stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Wilcoxon Sign-Rank Test
Q: Is MNP stock a buy or sell?
A: The dominant strategy among neural network is to Buy MNP Stock.
Q: Is Western Asset Municipal Partners Fund Inc. Common Stock stock a good investment?
A: The consensus rating for Western Asset Municipal Partners Fund Inc. Common Stock is Buy and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of MNP stock?
A: The consensus rating for MNP is Buy.
Q: What is the prediction period for MNP stock?
A: The prediction period for MNP is 8 Weeks

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