Modelling A.I. in Economics

Should You Buy LON:PAF Right Now?

Outlook: PAN AFRICAN RESOURCES PLC is assigned short-term B1 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
Methodology : Ensemble Learning (ML)
Hypothesis Testing : Linear 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

PAN AFRICAN RESOURCES PLC prediction model is evaluated with Ensemble Learning (ML) and Linear Regression1,2,3,4 and it is concluded that the LON:PAF stock is predictable in the short/long term. Ensemble learning is a machine learning (ML) technique that combines multiple models to create a single model that is more accurate than any of the individual models. This is done by combining the predictions of the individual models, typically using a voting scheme or a weighted average. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Sell

Graph 14

Key Points

  1. What is prediction model?
  2. Should I buy stocks now or wait amid such uncertainty?
  3. What is the best way to predict stock prices?

LON:PAF Target Price Prediction Modeling Methodology

We consider PAN AFRICAN RESOURCES PLC Decision Process with Ensemble Learning (ML) where A is the set of discrete actions of LON:PAF 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(Ensemble Learning (ML)) X S(n):→ 4 Weeks R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of LON:PAF stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Ensemble Learning (ML)

Ensemble learning is a machine learning (ML) technique that combines multiple models to create a single model that is more accurate than any of the individual models. This is done by combining the predictions of the individual models, typically using a voting scheme or a weighted average.

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?

LON:PAF Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:PAF PAN AFRICAN RESOURCES PLC
Time series to forecast: 4 Weeks

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 Ensemble Learning (ML) based LON:PAF Stock Prediction Model

  1. 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.
  2. 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.
  3. Changes in market conditions that give rise to market risk include changes in a benchmark interest rate, the price of another entity's financial instrument, a commodity price, a foreign exchange rate or an index of prices or rates.
  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.

LON:PAF PAN AFRICAN RESOURCES PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B1B1
Income StatementBa3Caa2
Balance SheetB1Baa2
Leverage RatiosCaa2Ba3
Cash FlowBaa2Caa2
Rates of Return and ProfitabilityCaa2B2

*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

PAN AFRICAN RESOURCES PLC is assigned short-term B1 & long-term B1 estimated rating. PAN AFRICAN RESOURCES PLC prediction model is evaluated with Ensemble Learning (ML) and Linear Regression1,2,3,4 and it is concluded that the LON:PAF stock is predictable in the short/long term. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Sell

Prediction Confidence Score

Trust metric by Neural Network: 79 out of 100 with 496 signals.

References

  1. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
  2. Bera, A. M. L. Higgins (1997), "ARCH and bilinearity as competing models for nonlinear dependence," Journal of Business Economic Statistics, 15, 43–50.
  3. J. N. Foerster, Y. M. Assael, N. de Freitas, and S. Whiteson. Learning to communicate with deep multi-agent reinforcement learning. In Advances in Neural Information Processing Systems 29: Annual Conference on Neural Information Processing Systems 2016, December 5-10, 2016, Barcelona, Spain, pages 2137–2145, 2016.
  4. Varian HR. 2014. Big data: new tricks for econometrics. J. Econ. Perspect. 28:3–28
  5. C. Szepesvári. Algorithms for Reinforcement Learning. Synthesis Lectures on Artificial Intelligence and Machine Learning. Morgan & Claypool Publishers, 2010
  6. Bennett J, Lanning S. 2007. The Netflix prize. In Proceedings of KDD Cup and Workshop 2007, p. 35. New York: ACM
  7. Keane MP. 2013. Panel data discrete choice models of consumer demand. In The Oxford Handbook of Panel Data, ed. BH Baltagi, pp. 54–102. Oxford, UK: Oxford Univ. Press
Frequently Asked QuestionsQ: What is the prediction methodology for LON:PAF stock?
A: LON:PAF stock prediction methodology: We evaluate the prediction models Ensemble Learning (ML) and Linear Regression
Q: Is LON:PAF stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:PAF Stock.
Q: Is PAN AFRICAN RESOURCES PLC stock a good investment?
A: The consensus rating for PAN AFRICAN RESOURCES PLC is Sell and is assigned short-term B1 & long-term B1 estimated rating.
Q: What is the consensus rating of LON:PAF stock?
A: The consensus rating for LON:PAF is Sell.
Q: What is the prediction period for LON:PAF stock?
A: The prediction period for LON:PAF is 4 Weeks

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