Modelling A.I. in Economics

BLCO Stock: A Sinking Ship?

Outlook: Bausch + Lomb Corporation Common Shares is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
Methodology : Supervised Machine Learning (ML)
Hypothesis Testing : Chi-Square
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.

Summary

Bausch + Lomb Corporation Common Shares prediction model is evaluated with Supervised Machine Learning (ML) and Chi-Square1,2,3,4 and it is concluded that the BLCO stock is predictable in the short/long term. Supervised machine learning (ML) is a type of machine learning where a model is trained on labeled data. This means that the data has been tagged with the correct output for the input data. The model learns to predict the output for new input data based on the labeled data. Supervised ML is a powerful tool that can be used for a variety of tasks, including classification, regression, and forecasting. Classification tasks involve predicting the category of an input data, such as whether an email is spam or not. Regression tasks involve predicting a numerical value for an input data, such as the price of a house. Forecasting tasks involve predicting future values for a time series, such as the sales of a product. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Hold

Graph 22

Key Points

  1. How do you know when a stock will go up or down?
  2. Probability Distribution
  3. Trust metric by Neural Network

BLCO Target Price Prediction Modeling Methodology

We consider Bausch + Lomb Corporation Common Shares Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of BLCO 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(Chi-Square)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(Supervised Machine Learning (ML)) X S(n):→ 3 Month e x rx

n:Time series to forecast

p:Price signals of BLCO stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Supervised Machine Learning (ML)

Supervised machine learning (ML) is a type of machine learning where a model is trained on labeled data. This means that the data has been tagged with the correct output for the input data. The model learns to predict the output for new input data based on the labeled data. Supervised ML is a powerful tool that can be used for a variety of tasks, including classification, regression, and forecasting. Classification tasks involve predicting the category of an input data, such as whether an email is spam or not. Regression tasks involve predicting a numerical value for an input data, such as the price of a house. Forecasting tasks involve predicting future values for a time series, such as the sales of a product.

Chi-Square

A chi-squared test is a statistical hypothesis test that assesses whether observed frequencies in a sample differ significantly from expected frequencies. It is one of the most widely used statistical tests in the social sciences and in many areas of observational research. The chi-squared test is a non-parametric test, meaning that it does not assume that the data is normally distributed. This makes it a versatile tool that can be used to analyze a wide variety of data. There are two main types of chi-squared tests: the chi-squared goodness of fit test and the chi-squared test of independence.

 

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?

BLCO Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: BLCO Bausch + Lomb Corporation Common Shares
Time series to forecast: 3 Month

According to price forecasts, the dominant strategy among neural network is: Hold

Strategic Interaction Table Legend:

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%

Financial Data Adjustments for Supervised Machine Learning (ML) based BLCO Stock Prediction Model

  1. 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.
  2. 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.
  3. At the date of initial application, an entity shall determine whether the treatment in paragraph 5.7.7 would create or enlarge an accounting mismatch in profit or loss on the basis of the facts and circumstances that exist at the date of initial application. This Standard shall be applied retrospectively on the basis of that determination.
  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.

BLCO Bausch + Lomb Corporation Common Shares Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba3B1
Income StatementBaa2Caa2
Balance SheetCBaa2
Leverage RatiosB2Caa2
Cash FlowB1C
Rates of Return and ProfitabilityBaa2Baa2

*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?

Conclusions

Bausch + Lomb Corporation Common Shares is assigned short-term Ba3 & long-term B1 estimated rating. Bausch + Lomb Corporation Common Shares prediction model is evaluated with Supervised Machine Learning (ML) and Chi-Square1,2,3,4 and it is concluded that the BLCO stock is predictable in the short/long term. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Hold

Prediction Confidence Score

Trust metric by Neural Network: 73 out of 100 with 881 signals.

References

  1. Bai J. 2003. Inferential theory for factor models of large dimensions. Econometrica 71:135–71
  2. Varian HR. 2014. Big data: new tricks for econometrics. J. Econ. Perspect. 28:3–28
  3. Zeileis A, Hothorn T, Hornik K. 2008. Model-based recursive partitioning. J. Comput. Graph. Stat. 17:492–514 Zhou Z, Athey S, Wager S. 2018. Offline multi-action policy learning: generalization and optimization. arXiv:1810.04778 [stat.ML]
  4. J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
  5. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
  6. Bennett J, Lanning S. 2007. The Netflix prize. In Proceedings of KDD Cup and Workshop 2007, p. 35. New York: ACM
  7. Abadie A, Diamond A, Hainmueller J. 2010. Synthetic control methods for comparative case studies: estimat- ing the effect of California's tobacco control program. J. Am. Stat. Assoc. 105:493–505
Frequently Asked QuestionsQ: What is the prediction methodology for BLCO stock?
A: BLCO stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Chi-Square
Q: Is BLCO stock a buy or sell?
A: The dominant strategy among neural network is to Hold BLCO Stock.
Q: Is Bausch + Lomb Corporation Common Shares stock a good investment?
A: The consensus rating for Bausch + Lomb Corporation Common Shares is Hold and is assigned short-term Ba3 & long-term B1 estimated rating.
Q: What is the consensus rating of BLCO stock?
A: The consensus rating for BLCO is Hold.
Q: What is the prediction period for BLCO stock?
A: The prediction period for BLCO is 3 Month

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