Modelling A.I. in Economics

LON:PGHZ Stock: The Stock Market Bubble Is About to Burst

Outlook: PCGH ZDP PLC is assigned short-term B3 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (CNN Layer)
Hypothesis Testing : Stepwise 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.

Summary

PCGH ZDP PLC prediction model is evaluated with Modular Neural Network (CNN Layer) and Stepwise Regression1,2,3,4 and it is concluded that the LON:PGHZ stock is predictable in the short/long term. CNN layers are a powerful tool for extracting features from images. They are able to learn to detect patterns in images that are not easily detected by humans. This makes them well-suited for a variety of MNN applications. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Graph 29

Key Points

  1. Is Target price a good indicator?
  2. Is Target price a good indicator?
  3. What is Markov decision process in reinforcement learning?

LON:PGHZ Target Price Prediction Modeling Methodology

We consider PCGH ZDP PLC Decision Process with Modular Neural Network (CNN Layer) where A is the set of discrete actions of LON:PGHZ 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(Stepwise 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 (CNN Layer)) X S(n):→ 1 Year r s rs

n:Time series to forecast

p:Price signals of LON:PGHZ stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Modular Neural Network (CNN Layer)

CNN layers are a powerful tool for extracting features from images. They are able to learn to detect patterns in images that are not easily detected by humans. This makes them well-suited for a variety of MNN applications.

Stepwise Regression

Stepwise regression is a method of variable selection in which variables are added or removed from a model one at a time, based on their statistical significance. There are two main types of stepwise regression: forward selection and backward elimination. In forward selection, variables are added to the model one at a time, starting with the variable with the highest F-statistic. The F-statistic is a measure of how much improvement in the model is gained by adding the variable. Variables are added to the model until no variable adds a statistically significant improvement to 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:PGHZ Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:PGHZ PCGH ZDP PLC
Time series to forecast: 1 Year

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

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 Modular Neural Network (CNN Layer) based LON:PGHZ Stock Prediction Model

  1. IFRS 15, issued in May 2014, amended paragraphs 3.1.1, 4.2.1, 5.1.1, 5.2.1, 5.7.6, B3.2.13, B5.7.1, C5 and C42 and deleted paragraph C16 and its related heading. Paragraphs 5.1.3 and 5.7.1A, and a definition to Appendix A, were added. An entity shall apply those amendments when it applies IFRS 15.
  2. An entity must look through until it can identify the underlying pool of instruments that are creating (instead of passing through) the cash flows. This is the underlying pool of financial instruments.
  3. Conversely, if changes in the extent of offset indicate that the fluctuation is around a hedge ratio that is different from the hedge ratio that is currently used for that hedging relationship, or that there is a trend leading away from that hedge ratio, hedge ineffectiveness can be reduced by adjusting the hedge ratio, whereas retaining the hedge ratio would increasingly produce hedge ineffectiveness. Hence, in such circumstances, an entity must evaluate whether the hedging relationship reflects an imbalance between the weightings of the hedged item and the hedging instrument that would create hedge ineffectiveness (irrespective of whether recognised or not) that could result in an accounting outcome that would be inconsistent with the purpose of hedge accounting. If the hedge ratio is adjusted, it also affects the measurement and recognition of hedge ineffectiveness because, on rebalancing, the hedge ineffectiveness of the hedging relationship must be determined and recognised immediately before adjusting the hedging relationship in accordance with paragraph B6.5.8.
  4. An entity can also designate only changes in the cash flows or fair value of a hedged item above or below a specified price or other variable (a 'one-sided risk'). The intrinsic value of a purchased option hedging instrument (assuming that it has the same principal terms as the designated risk), but not its time value, reflects a one-sided risk in a hedged item. For example, an entity can designate the variability of future cash flow outcomes resulting from a price increase of a forecast commodity purchase. In such a situation, the entity designates only cash flow losses that result from an increase in the price above the specified level. The hedged risk does not include the time value of a purchased option, because the time value is not a component of the forecast transaction that affects profit or loss.

*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:PGHZ PCGH ZDP PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B3B3
Income StatementB1C
Balance SheetCaa2B2
Leverage RatiosCBa2
Cash FlowB1Caa2
Rates of Return and ProfitabilityCaa2C

*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

PCGH ZDP PLC is assigned short-term B3 & long-term B3 estimated rating. PCGH ZDP PLC prediction model is evaluated with Modular Neural Network (CNN Layer) and Stepwise Regression1,2,3,4 and it is concluded that the LON:PGHZ stock is predictable in the short/long term. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Prediction Confidence Score

Trust metric by Neural Network: 84 out of 100 with 732 signals.

References

  1. A. K. Agogino and K. Tumer. Analyzing and visualizing multiagent rewards in dynamic and stochastic environments. Journal of Autonomous Agents and Multi-Agent Systems, 17(2):320–338, 2008
  2. Clements, M. P. D. F. Hendry (1995), "Forecasting in cointegrated systems," Journal of Applied Econometrics, 10, 127–146.
  3. Farrell MH, Liang T, Misra S. 2018. Deep neural networks for estimation and inference: application to causal effects and other semiparametric estimands. arXiv:1809.09953 [econ.EM]
  4. Semenova V, Goldman M, Chernozhukov V, Taddy M. 2018. Orthogonal ML for demand estimation: high dimensional causal inference in dynamic panels. arXiv:1712.09988 [stat.ML]
  5. R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
  6. ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Can Neural Networks Predict Stock Market? (No. Stock Analysis). AC Investment Research.
  7. Abadir, K. M., K. Hadri E. Tzavalis (1999), "The influence of VAR dimensions on estimator biases," Econometrica, 67, 163–181.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:PGHZ stock?
A: LON:PGHZ stock prediction methodology: We evaluate the prediction models Modular Neural Network (CNN Layer) and Stepwise Regression
Q: Is LON:PGHZ stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:PGHZ Stock.
Q: Is PCGH ZDP PLC stock a good investment?
A: The consensus rating for PCGH ZDP PLC is Sell and is assigned short-term B3 & long-term B3 estimated rating.
Q: What is the consensus rating of LON:PGHZ stock?
A: The consensus rating for LON:PGHZ is Sell.
Q: What is the prediction period for LON:PGHZ stock?
A: The prediction period for LON:PGHZ is 1 Year

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