Modelling A.I. in Economics

Z Stock: Is It a Bubble?

Outlook: Zillow Group Inc. Class C Capital Stock is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Speculative Trend
Time series to forecast n: 14 Jun 2023 for 4 Weeks
Methodology : Modular Neural Network (Social Media Sentiment Analysis)

Abstract

Zillow Group Inc. Class C Capital Stock prediction model is evaluated with Modular Neural Network (Social Media Sentiment Analysis) and Linear Regression1,2,3,4 and it is concluded that the Z stock is predictable in the short/long term. A modular neural network (MNN) is a type of artificial neural network that can be used for social media sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of social media sentiment analysis, MNNs can be used to identify the sentiment of social media posts, such as tweets, Facebook posts, and Instagram stories. This information can then be used to filter out irrelevant or unwanted content, to identify trends in public opinion, and to target users with relevant advertising. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Speculative Trend

Graph 1

Key Points

  1. What is prediction in deep learning?
  2. Is Target price a good indicator?
  3. Market Risk

Z Target Price Prediction Modeling Methodology

We consider Zillow Group Inc. Class C Capital Stock Decision Process with Modular Neural Network (Social Media Sentiment Analysis) where A is the set of discrete actions of Z 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(Linear Regression)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 (Social Media Sentiment Analysis)) X S(n):→ 4 Weeks e x rx

n:Time series to forecast

p:Price signals of Z stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Modular Neural Network (Social Media Sentiment Analysis)

A modular neural network (MNN) is a type of artificial neural network that can be used for social media sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of social media sentiment analysis, MNNs can be used to identify the sentiment of social media posts, such as tweets, Facebook posts, and Instagram stories. This information can then be used to filter out irrelevant or unwanted content, to identify trends in public opinion, and to target users with relevant advertising.

Linear Regression

In statistics, linear regression is a method for estimating the relationship between a dependent variable and one or more independent variables. The dependent variable is the variable that is being predicted, and the independent variables are the variables that are used to predict the dependent variable. Linear regression assumes that the relationship between the dependent variable and the independent variables is linear. This means that the dependent variable can be represented as a straight line function of the independent variables.

 

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?

Z Stock Forecast (Buy or Sell) for 4 Weeks

Sample Set: Neural Network
Stock/Index: Z Zillow Group Inc. Class C Capital Stock
Time series to forecast n: 14 Jun 2023 for 4 Weeks

According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Speculative Trend

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 Zillow Group Inc. Class C Capital Stock

  1. All investments in equity instruments and contracts on those instruments must be measured at fair value. However, in limited circumstances, cost may be an appropriate estimate of fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
  2. If a put option written by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at fair value, the associated liability is measured at the option exercise price plus the time value of the option. The measurement of the asset at fair value is limited to the lower of the fair value and the option exercise price because the entity has no right to increases in the fair value of the transferred asset above the exercise price of the option. This ensures that the net carrying amount of the asset and the associated liability is the fair value of the put option obligation. For example, if the fair value of the underlying asset is CU120, the option exercise price is CU100 and the time value of the option is CU5, the carrying amount of the associated liability is CU105 (CU100 + CU5) and the carrying amount of the asset is CU100 (in this case the option exercise price).
  3. The rebuttable presumption in paragraph 5.5.11 is not an absolute indicator that lifetime expected credit losses should be recognised, but is presumed to be the latest point at which lifetime expected credit losses should be recognised even when using forward-looking information (including macroeconomic factors on a portfolio level).
  4. When measuring hedge ineffectiveness, an entity shall consider the time value of money. Consequently, the entity determines the value of the hedged item on a present value basis and therefore the change in the value of the hedged item also includes the effect of the time value of money.

*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

Zillow Group Inc. Class C Capital Stock is assigned short-term Ba1 & long-term Ba1 estimated rating. Zillow Group Inc. Class C Capital Stock prediction model is evaluated with Modular Neural Network (Social Media Sentiment Analysis) and Linear Regression1,2,3,4 and it is concluded that the Z stock is predictable in the short/long term. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Speculative Trend

Z Zillow Group Inc. Class C Capital Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba1Ba1
Income StatementBaa2Baa2
Balance SheetBa3Baa2
Leverage RatiosBaa2Baa2
Cash FlowB2C
Rates of Return and ProfitabilityB3Baa2

*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: 78 out of 100 with 500 signals.

References

  1. R. Howard and J. Matheson. Risk sensitive Markov decision processes. Management Science, 18(7):356– 369, 1972
  2. M. Babes, E. M. de Cote, and M. L. Littman. Social reward shaping in the prisoner's dilemma. In 7th International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS 2008), Estoril, Portugal, May 12-16, 2008, Volume 3, pages 1389–1392, 2008.
  3. L. Busoniu, R. Babuska, and B. D. Schutter. A comprehensive survey of multiagent reinforcement learning. IEEE Transactions of Systems, Man, and Cybernetics Part C: Applications and Reviews, 38(2), 2008.
  4. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  5. Dimakopoulou M, Zhou Z, Athey S, Imbens G. 2018. Balanced linear contextual bandits. arXiv:1812.06227 [cs.LG]
  6. Abadie A, Cattaneo MD. 2018. Econometric methods for program evaluation. Annu. Rev. Econ. 10:465–503
  7. Wager S, Athey S. 2017. Estimation and inference of heterogeneous treatment effects using random forests. J. Am. Stat. Assoc. 113:1228–42
Frequently Asked QuestionsQ: What is the prediction methodology for Z stock?
A: Z stock prediction methodology: We evaluate the prediction models Modular Neural Network (Social Media Sentiment Analysis) and Linear Regression
Q: Is Z stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend Z Stock.
Q: Is Zillow Group Inc. Class C Capital Stock stock a good investment?
A: The consensus rating for Zillow Group Inc. Class C Capital Stock is Speculative Trend and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of Z stock?
A: The consensus rating for Z is Speculative Trend.
Q: What is the prediction period for Z stock?
A: The prediction period for Z is 4 Weeks

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