Modelling A.I. in Economics

LON:JUSC Stock: A Bubble Waiting to Burst

Outlook: JPMORGAN US SMALLER CO. INV TST PLC is assigned short-term B2 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
Methodology : Transfer Learning (ML)
Hypothesis Testing : Multiple Regression
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.

Abstract

JPMORGAN US SMALLER CO. INV TST PLC prediction model is evaluated with Transfer Learning (ML) and Multiple Regression1,2,3,4 and it is concluded that the LON:JUSC 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 1 Year period, the dominant strategy among neural network is: Hold

Graph 39

Key Points

  1. Stock Rating
  2. Nash Equilibria
  3. Operational Risk

LON:JUSC Target Price Prediction Modeling Methodology

We consider JPMORGAN US SMALLER CO. INV TST PLC Decision Process with Transfer Learning (ML) where A is the set of discrete actions of LON:JUSC 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(Multiple 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(Transfer Learning (ML)) X S(n):→ 1 Year R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of LON:JUSC 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.

Multiple Regression

Multiple regression is a statistical method that analyzes the relationship between a dependent variable and multiple 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. Multiple regression is a more complex statistical method than simple linear regression, which only analyzes the relationship between a dependent variable and one independent variable. Multiple regression can be used to analyze more complex relationships between variables, and it can also be used to control for confounding variables. A confounding variable is a variable that is correlated with both the dependent variable and one or more of the independent variables. Confounding variables can distort the relationship between the dependent variable and the independent variables. Multiple regression can be used to control for confounding variables by including them in the model.

 

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?

LON:JUSC Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:JUSC JPMORGAN US SMALLER CO. INV TST PLC
Time series to forecast: 1 Year

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 Transfer Learning (ML) based LON:JUSC Stock Prediction Model

  1. The significance of a change in the credit risk since initial recognition depends on the risk of a default occurring as at initial recognition. Thus, a given change, in absolute terms, in the risk of a default occurring will be more significant for a financial instrument with a lower initial risk of a default occurring compared to a financial instrument with a higher initial risk of a default occurring.
  2. The decision of an entity to designate a financial asset or financial liability as at fair value through profit or loss is similar to an accounting policy choice (although, unlike an accounting policy choice, it is not required to be applied consistently to all similar transactions). When an entity has such a choice, paragraph 14(b) of IAS 8 requires the chosen policy to result in the financial statements providing reliable and more relevant information about the effects of transactions, other events and conditions on the entity's financial position, financial performance or cash flows. For example, in the case of designation of a financial liability as at fair value through profit or loss, paragraph 4.2.2 sets out the two circumstances when the requirement for more relevant information will be met. Accordingly, to choose such designation in accordance with paragraph 4.2.2, the entity needs to demonstrate that it falls within one (or both) of these two circumstances.
  3. A regular way purchase or sale gives rise to a fixed price commitment between trade date and settlement date that meets the definition of a derivative. However, because of the short duration of the commitment it is not recognised as a derivative financial instrument. Instead, this Standard provides for special accounting for such regular way contracts (see paragraphs 3.1.2 and B3.1.3–B3.1.6).
  4. If a financial instrument is designated in accordance with paragraph 6.7.1 as measured at fair value through profit or loss after its initial recognition, or was previously not recognised, the difference at the time of designation between the carrying amount, if any, and the fair value shall immediately be recognised in profit or loss. For financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A, the cumulative gain or loss previously recognised in other comprehensive income shall immediately be reclassified from equity to profit or loss as a reclassification adjustment.

*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.

LON:JUSC JPMORGAN US SMALLER CO. INV TST PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2B3
Income StatementBa3C
Balance SheetB1Caa2
Leverage RatiosCB3
Cash FlowCaa2C
Rates of Return and ProfitabilityBa1Ba3

*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

JPMORGAN US SMALLER CO. INV TST PLC is assigned short-term B2 & long-term B3 estimated rating. JPMORGAN US SMALLER CO. INV TST PLC prediction model is evaluated with Transfer Learning (ML) and Multiple Regression1,2,3,4 and it is concluded that the LON:JUSC stock is predictable in the short/long term. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Hold

Prediction Confidence Score

Trust metric by Neural Network: 93 out of 100 with 680 signals.

References

  1. Zubizarreta JR. 2015. Stable weights that balance covariates for estimation with incomplete outcome data. J. Am. Stat. Assoc. 110:910–22
  2. Breiman L, Friedman J, Stone CJ, Olshen RA. 1984. Classification and Regression Trees. Boca Raton, FL: CRC Press
  3. Breiman L. 1996. Bagging predictors. Mach. Learn. 24:123–40
  4. 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.
  5. D. Bertsekas and J. Tsitsiklis. Neuro-dynamic programming. Athena Scientific, 1996.
  6. Breiman L, Friedman J, Stone CJ, Olshen RA. 1984. Classification and Regression Trees. Boca Raton, FL: CRC Press
  7. J. Harb and D. Precup. Investigating recurrence and eligibility traces in deep Q-networks. In Deep Reinforcement Learning Workshop, NIPS 2016, Barcelona, Spain, 2016.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:JUSC stock?
A: LON:JUSC stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Multiple Regression
Q: Is LON:JUSC stock a buy or sell?
A: The dominant strategy among neural network is to Hold LON:JUSC Stock.
Q: Is JPMORGAN US SMALLER CO. INV TST PLC stock a good investment?
A: The consensus rating for JPMORGAN US SMALLER CO. INV TST PLC is Hold and is assigned short-term B2 & long-term B3 estimated rating.
Q: What is the consensus rating of LON:JUSC stock?
A: The consensus rating for LON:JUSC is Hold.
Q: What is the prediction period for LON:JUSC stock?
A: The prediction period for LON:JUSC is 1 Year

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