Modelling A.I. in Economics

LON:FCM Stock Forecast: A Buy For The Next 4 Weeks

Outlook: FIRST CLASS METALS PLC is assigned short-term B2 & long-term Ba1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Buy
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (Financial Sentiment Analysis)
Hypothesis Testing : Paired 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.

Summary

FIRST CLASS METALS PLC prediction model is evaluated with Modular Neural Network (Financial Sentiment Analysis) and Paired T-Test1,2,3,4 and it is concluded that the LON:FCM stock is predictable in the short/long term. Modular neural networks (MNNs) are a type of artificial neural network that can be used for financial sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of financial sentiment analysis, MNNs can be used to identify the sentiment of financial news articles, social media posts, and other forms of online content. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Buy

Graph 1

Key Points

  1. What is a prediction confidence?
  2. Can machine learning predict?
  3. Is now good time to invest?

LON:FCM Target Price Prediction Modeling Methodology

We consider FIRST CLASS METALS PLC Decision Process with Modular Neural Network (Financial Sentiment Analysis) where A is the set of discrete actions of LON:FCM 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(Paired T-Test)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 (Financial Sentiment Analysis)) X S(n):→ 4 Weeks i = 1 n s i

n:Time series to forecast

p:Price signals of LON:FCM stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Modular Neural Network (Financial Sentiment Analysis)

Modular neural networks (MNNs) are a type of artificial neural network that can be used for financial sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of financial sentiment analysis, MNNs can be used to identify the sentiment of financial news articles, social media posts, and other forms of online content. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising.

Paired T-Test

A paired t-test is a statistical test that compares the means of two paired samples. In a paired t-test, each data point in one sample is paired with a data point in the other sample. The pairs are typically related in some way, such as before and after measurements, or measurements from the same subject under different conditions. The paired t-test is a parametric test, which means that it assumes that the data is normally distributed. The paired t-test is also a dependent samples test, which means that the data points in each pair are correlated.

 

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:FCM Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:FCM FIRST CLASS METALS PLC
Time series to forecast: 4 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 Modular Neural Network (Financial Sentiment Analysis) based LON:FCM Stock Prediction Model

  1. To the extent that a transfer of a financial asset does not qualify for derecognition, the transferor's contractual rights or obligations related to the transfer are not accounted for separately as derivatives if recognising both the derivative and either the transferred asset or the liability arising from the transfer would result in recognising the same rights or obligations twice. For example, a call option retained by the transferor may prevent a transfer of financial assets from being accounted for as a sale. In that case, the call option is not separately recognised as a derivative asset.
  2. An example of a fair value hedge is a hedge of exposure to changes in the fair value of a fixed-rate debt instrument arising from changes in interest rates. Such a hedge could be entered into by the issuer or by the holder.
  3. An entity has not retained control of a transferred asset if the transferee has the practical ability to sell the transferred asset. An entity has retained control of a transferred asset if the transferee does not have the practical ability to sell the transferred asset. A transferee has the practical ability to sell the transferred asset if it is traded in an active market because the transferee could repurchase the transferred asset in the market if it needs to return the asset to the entity. For example, a transferee may have the practical ability to sell a transferred asset if the transferred asset is subject to an option that allows the entity to repurchase it, but the transferee can readily obtain the transferred asset in the market if the option is exercised. A transferee does not have the practical ability to sell the transferred asset if the entity retains such an option and the transferee cannot readily obtain the transferred asset in the market if the entity exercises its option
  4. For a discontinued hedging relationship, when the interest rate benchmark on which the hedged future cash flows had been based is changed as required by interest rate benchmark reform, for the purpose of applying paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, the amount accumulated in the cash flow hedge reserve for that hedging relationship shall be deemed to be based on the alternative benchmark rate on which the hedged future cash flows will be based.

*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:FCM FIRST CLASS METALS PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2Ba1
Income StatementB1Baa2
Balance SheetCaa2Baa2
Leverage RatiosBa1B3
Cash FlowB2Ba3
Rates of Return and ProfitabilityB3Ba1

*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

FIRST CLASS METALS PLC is assigned short-term B2 & long-term Ba1 estimated rating. FIRST CLASS METALS PLC prediction model is evaluated with Modular Neural Network (Financial Sentiment Analysis) and Paired T-Test1,2,3,4 and it is concluded that the LON:FCM stock is predictable in the short/long term. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Buy

Prediction Confidence Score

Trust metric by Neural Network: 77 out of 100 with 720 signals.

References

  1. Athey S, Blei D, Donnelly R, Ruiz F. 2017b. Counterfactual inference for consumer choice across many prod- uct categories. AEA Pap. Proc. 108:64–67
  2. Friedberg R, Tibshirani J, Athey S, Wager S. 2018. Local linear forests. arXiv:1807.11408 [stat.ML]
  3. Sutton RS, Barto AG. 1998. Reinforcement Learning: An Introduction. Cambridge, MA: MIT Press
  4. Barrett, C. B. (1997), "Heteroscedastic price forecasting for food security management in developing countries," Oxford Development Studies, 25, 225–236.
  5. V. Borkar. An actor-critic algorithm for constrained Markov decision processes. Systems & Control Letters, 54(3):207–213, 2005.
  6. R. Sutton and A. Barto. Reinforcement Learning. The MIT Press, 1998
  7. Bewley, R. M. Yang (1998), "On the size and power of system tests for cointegration," Review of Economics and Statistics, 80, 675–679.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:FCM stock?
A: LON:FCM stock prediction methodology: We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) and Paired T-Test
Q: Is LON:FCM stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:FCM Stock.
Q: Is FIRST CLASS METALS PLC stock a good investment?
A: The consensus rating for FIRST CLASS METALS PLC is Buy and is assigned short-term B2 & long-term Ba1 estimated rating.
Q: What is the consensus rating of LON:FCM stock?
A: The consensus rating for LON:FCM is Buy.
Q: What is the prediction period for LON:FCM stock?
A: The prediction period for LON:FCM is 4 Weeks

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