Modelling A.I. in Economics

Where Will LON:PVN Stock Be in 4 Weeks?

Outlook: PROVEN VCT PLC is assigned short-term B1 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Speculative Trend
Time series to forecast n: for Weeks2
Methodology : Transfer Learning (ML)
Hypothesis Testing : Factor
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

PROVEN VCT PLC prediction model is evaluated with Transfer Learning (ML) and Factor1,2,3,4 and it is concluded that the LON:PVN 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 4 Weeks period, the dominant strategy among neural network is: Speculative Trend

Graph 18

Key Points

  1. How useful are statistical predictions?
  2. What is a prediction confidence?
  3. Trading Interaction

LON:PVN Target Price Prediction Modeling Methodology

We consider PROVEN VCT PLC Decision Process with Transfer Learning (ML) where A is the set of discrete actions of LON:PVN 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(Factor)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):→ 4 Weeks R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of LON:PVN 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.

Factor

In statistics, a factor is a variable that can influence the value of another variable. Factors can be categorical or continuous. Categorical factors have a limited number of possible values, such as gender (male or female) or blood type (A, B, AB, or O). Continuous factors can have an infinite number of possible values, such as height or weight. Factors can be used to explain the variation in a dependent variable. For example, a study might find that there is a relationship between gender and height. In this case, gender would be the independent variable, height would be the dependent variable, and the factor would be gender.

 

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:PVN Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:PVN PROVEN VCT PLC
Time series to forecast: 4 Weeks

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

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:PVN Stock Prediction Model

  1. For the purpose of applying the requirement in paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, an entity shall assume that the interest rate benchmark on which the hedged cash flows (contractually or non-contractually specified) are based is not altered as a result of interest rate benchmark reform.
  2. Such designation may be used whether paragraph 4.3.3 requires the embedded derivatives to be separated from the host contract or prohibits such separation. However, paragraph 4.3.5 would not justify designating the hybrid contract as at fair value through profit or loss in the cases set out in paragraph 4.3.5(a) and (b) because doing so would not reduce complexity or increase reliability.
  3. Hedge effectiveness is the extent to which changes in the fair value or the cash flows of the hedging instrument offset changes in the fair value or the cash flows of the hedged item (for example, when the hedged item is a risk component, the relevant change in fair value or cash flows of an item is the one that is attributable to the hedged risk). Hedge ineffectiveness is the extent to which the changes in the fair value or the cash flows of the hedging instrument are greater or less than those on the hedged item.
  4. If an entity prepares interim financial reports in accordance with IAS 34 Interim Financial Reporting the entity need not apply the requirements in this Standard to interim periods prior to the date of initial application if it is impracticable (as defined in IAS 8).

*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:PVN PROVEN VCT PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B1B3
Income StatementBaa2Caa2
Balance SheetCaa2C
Leverage RatiosBaa2Ba3
Cash FlowCaa2C
Rates of Return and ProfitabilityB1C

*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

PROVEN VCT PLC is assigned short-term B1 & long-term B3 estimated rating. PROVEN VCT PLC prediction model is evaluated with Transfer Learning (ML) and Factor1,2,3,4 and it is concluded that the LON:PVN 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

Prediction Confidence Score

Trust metric by Neural Network: 83 out of 100 with 872 signals.

References

  1. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  2. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  3. Candès EJ, Recht B. 2009. Exact matrix completion via convex optimization. Found. Comput. Math. 9:717
  4. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
  5. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
  6. Chernozhukov V, Demirer M, Duflo E, Fernandez-Val I. 2018b. Generic machine learning inference on heteroge- nous treatment effects in randomized experiments. NBER Work. Pap. 24678
  7. Christou, C., P. A. V. B. Swamy G. S. Tavlas (1996), "Modelling optimal strategies for the allocation of wealth in multicurrency investments," International Journal of Forecasting, 12, 483–493.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:PVN stock?
A: LON:PVN stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Factor
Q: Is LON:PVN stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend LON:PVN Stock.
Q: Is PROVEN VCT PLC stock a good investment?
A: The consensus rating for PROVEN VCT PLC is Speculative Trend and is assigned short-term B1 & long-term B3 estimated rating.
Q: What is the consensus rating of LON:PVN stock?
A: The consensus rating for LON:PVN is Speculative Trend.
Q: What is the prediction period for LON:PVN stock?
A: The prediction period for LON:PVN is 4 Weeks

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