BWMX Stock: A Strong Financial Position and Bright Future

Outlook: Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares is assigned short-term B3 & long-term B2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Buy
Time series to forecast n: for Weeks²
Methodology : Reinforcement Machine Learning (ML)
Hypothesis Testing : Independent T-Test
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

Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares prediction model is evaluated with Reinforcement Machine Learning (ML) and Independent T-Test^1,2,3,4 and it is concluded that the BWMX stock is predictable in the short/long term. Reinforcement machine learning (RL) is a type of machine learning where an agent learns to take actions in an environment in order to maximize a reward. The agent does this by trial and error, and is able to learn from its mistakes. RL is a powerful tool that can be used for a variety of tasks, including game playing, robotics, and finance. According to price forecasts for 8 Weeks period, the dominant strategy among neural network is: Buy

Key Points

1. What is a prediction confidence?
2. Is now good time to invest?
3. Prediction Modeling

BWMX Target Price Prediction Modeling Methodology

We consider Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares Decision Process with Reinforcement Machine Learning (ML) where A is the set of discrete actions of BWMX 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(Independent T-Test)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Reinforcement Machine Learning (ML)) X S(n):→ 8 Weeks $\begin{array}{l}\int r^s\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of BWMX stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Reinforcement Machine Learning (ML)

Reinforcement machine learning (RL) is a type of machine learning where an agent learns to take actions in an environment in order to maximize a reward. The agent does this by trial and error, and is able to learn from its mistakes. RL is a powerful tool that can be used for a variety of tasks, including game playing, robotics, and finance.

Independent T-Test

An independent t-test is a statistical test that compares the means of two independent samples. In an independent t-test, the data points in each sample are not related to each other. The independent t-test is a parametric test, which means that it assumes that the data is normally distributed. The independent t-test is also a two-sample test, which means that it compares the means of two independent samples.

 

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?

BWMX Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: BWMX Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares
Time series to forecast: 8 Weeks

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

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 Reinforcement Machine Learning (ML) based BWMX Stock Prediction Model

1. 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.
2. For floating-rate financial assets and floating-rate financial liabilities, periodic re-estimation of cash flows to reflect the movements in the market rates of interest alters the effective interest rate. If a floating-rate financial asset or a floating-rate financial liability is recognised initially at an amount equal to the principal receivable or payable on maturity, re-estimating the future interest payments normally has no significant effect on the carrying amount of the asset or the liability.
3. Fluctuation around a constant hedge ratio (and hence the related hedge ineffectiveness) cannot be reduced by adjusting the hedge ratio in response to each particular outcome. Hence, in such circumstances, the change in the extent of offset is a matter of measuring and recognising hedge ineffectiveness but does not require rebalancing.
4. Rebalancing is accounted for as a continuation of the hedging relationship in accordance with paragraphs B6.5.9–B6.5.21. On rebalancing, the hedge ineffectiveness of the hedging relationship is determined and recognised immediately before adjusting the hedging relationship.

*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.

BWMX Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	B3	B2
Income Statement	Caa2	Caa2
Balance Sheet	Caa2	B1
Leverage Ratios	B1	B2
Cash Flow	C	Caa2
Rates of Return and Profitability	Baa2	C

*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

Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares is assigned short-term B3 & long-term B2 estimated rating. Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares prediction model is evaluated with Reinforcement Machine Learning (ML) and Independent T-Test^1,2,3,4 and it is concluded that the BWMX stock is predictable in the short/long term. According to price forecasts for 8 Weeks period, the dominant strategy among neural network is: Buy

Prediction Confidence Score

Trust metric by Neural Network: 73 out of 100 with 487 signals.

References

1. Bell RM, Koren Y. 2007. Lessons from the Netflix prize challenge. ACM SIGKDD Explor. Newsl. 9:75–79
2. Breiman L. 2001b. Statistical modeling: the two cultures (with comments and a rejoinder by the author). Stat. Sci. 16:199–231
3. M. Babes, E. M. de Cote, and M. L. Littman. Social reward shaping in the prisoner's dilemma. In 7th International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS 2008), Estoril, Portugal, May 12-16, 2008, Volume 3, pages 1389–1392, 2008.
4. Akgiray, V. (1989), "Conditional heteroscedasticity in time series of stock returns: Evidence and forecasts," Journal of Business, 62, 55–80.
5. Robins J, Rotnitzky A. 1995. Semiparametric efficiency in multivariate regression models with missing data. J. Am. Stat. Assoc. 90:122–29
6. Canova, F. B. E. Hansen (1995), "Are seasonal patterns constant over time? A test for seasonal stability," Journal of Business and Economic Statistics, 13, 237–252.
7. A. Eck, L. Soh, S. Devlin, and D. Kudenko. Potential-based reward shaping for finite horizon online POMDP planning. Autonomous Agents and Multi-Agent Systems, 30(3):403–445, 2016

Frequently Asked Questions

Q: What is the prediction methodology for BWMX stock?
A: BWMX stock prediction methodology: We evaluate the prediction models Reinforcement Machine Learning (ML) and Independent T-Test
Q: Is BWMX stock a buy or sell?
A: The dominant strategy among neural network is to Buy BWMX Stock.
Q: Is Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares stock a good investment?
A: The consensus rating for Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares is Buy and is assigned short-term B3 & long-term B2 estimated rating.
Q: What is the consensus rating of BWMX stock?
A: The consensus rating for BWMX is Buy.
Q: What is the prediction period for BWMX stock?
A: The prediction period for BWMX is 8 Weeks

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