Modelling A.I. in Economics

TIXT:TSX Stock: A Spark That Could Fizzle

Outlook: TELUS International (Cda) Inc. is assigned short-term B3 & long-term Ba3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Speculative Trend
Time series to forecast n: for Weeks2
Methodology : Supervised Machine Learning (ML)
Hypothesis Testing : Beta
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

TELUS International (Cda) Inc. prediction model is evaluated with Supervised Machine Learning (ML) and Beta1,2,3,4 and it is concluded that the TIXT:TSX stock is predictable in the short/long term. Supervised machine learning (ML) is a type of machine learning where a model is trained on labeled data. This means that the data has been tagged with the correct output for the input data. The model learns to predict the output for new input data based on the labeled data. Supervised ML is a powerful tool that can be used for a variety of tasks, including classification, regression, and forecasting. Classification tasks involve predicting the category of an input data, such as whether an email is spam or not. Regression tasks involve predicting a numerical value for an input data, such as the price of a house. Forecasting tasks involve predicting future values for a time series, such as the sales of a product. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Speculative Trend

Graph 26

Key Points

  1. What are main components of Markov decision process?
  2. Nash Equilibria
  3. What is the best way to predict stock prices?

TIXT:TSX Target Price Prediction Modeling Methodology

We consider TELUS International (Cda) Inc. Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of TIXT:TSX 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(Beta)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(Supervised Machine Learning (ML)) X S(n):→ 4 Weeks S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of TIXT:TSX stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Supervised Machine Learning (ML)

Supervised machine learning (ML) is a type of machine learning where a model is trained on labeled data. This means that the data has been tagged with the correct output for the input data. The model learns to predict the output for new input data based on the labeled data. Supervised ML is a powerful tool that can be used for a variety of tasks, including classification, regression, and forecasting. Classification tasks involve predicting the category of an input data, such as whether an email is spam or not. Regression tasks involve predicting a numerical value for an input data, such as the price of a house. Forecasting tasks involve predicting future values for a time series, such as the sales of a product.

Beta

In statistics, beta (β) is a measure of the strength of the relationship between two variables. It is calculated as the slope of the line of best fit in a regression analysis. Beta can range from -1 to 1, with a value of 0 indicating no relationship between the two variables. A positive beta indicates that as one variable increases, the other variable also increases. A negative beta indicates that as one variable increases, the other variable decreases. For example, a study might find that there is a positive relationship between height and weight. This means that taller people tend to weigh more. The beta coefficient for this relationship would be positive.

 

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?

TIXT:TSX Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: TIXT:TSX TELUS International (Cda) Inc.
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 Supervised Machine Learning (ML) based TIXT:TSX 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. If a call option right retained by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at fair value, the asset continues to be measured at its fair value. The associated liability is measured at (i) the option exercise price less the time value of the option if the option is in or at the money, or (ii) the fair value of the transferred asset less the time value of the option if the option is out of the money. The adjustment to the measurement of the associated liability ensures that the net carrying amount of the asset and the associated liability is the fair value of the call option right. For example, if the fair value of the underlying asset is CU80, the option exercise price is CU95 and the time value of the option is CU5, the carrying amount of the associated liability is CU75 (CU80 – CU5) and the carrying amount of the transferred asset is CU80 (ie its fair value)
  3. If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its fair value decreases below zero, it is a financial liability measured in accordance with paragraph 4.2.1. However, hybrid contracts with hosts that are assets within the scope of this Standard are always measured in accordance with paragraph 4.3.2.
  4. For the avoidance of doubt, the effects of replacing the original counterparty with a clearing counterparty and making the associated changes as described in paragraph 6.5.6 shall be reflected in the measurement of the hedging instrument and therefore in the assessment of hedge effectiveness and the measurement of hedge effectiveness

*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.

TIXT:TSX TELUS International (Cda) Inc. Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B3Ba3
Income StatementCaa2Baa2
Balance SheetCaa2Caa2
Leverage RatiosBaa2Baa2
Cash FlowCCaa2
Rates of Return and ProfitabilityB1Baa2

*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

TELUS International (Cda) Inc. is assigned short-term B3 & long-term Ba3 estimated rating. TELUS International (Cda) Inc. prediction model is evaluated with Supervised Machine Learning (ML) and Beta1,2,3,4 and it is concluded that the TIXT:TSX 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: 81 out of 100 with 712 signals.

References

  1. T. Shardlow and A. Stuart. A perturbation theory for ergodic Markov chains and application to numerical approximations. SIAM journal on numerical analysis, 37(4):1120–1137, 2000
  2. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  3. Y. Le Tallec. Robust, risk-sensitive, and data-driven control of Markov decision processes. PhD thesis, Massachusetts Institute of Technology, 2007.
  4. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  5. 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
  6. Gentzkow M, Kelly BT, Taddy M. 2017. Text as data. NBER Work. Pap. 23276
  7. E. Altman, K. Avrachenkov, and R. N ́u ̃nez-Queija. Perturbation analysis for denumerable Markov chains with application to queueing models. Advances in Applied Probability, pages 839–853, 2004
Frequently Asked QuestionsQ: What is the prediction methodology for TIXT:TSX stock?
A: TIXT:TSX stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Beta
Q: Is TIXT:TSX stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend TIXT:TSX Stock.
Q: Is TELUS International (Cda) Inc. stock a good investment?
A: The consensus rating for TELUS International (Cda) Inc. is Speculative Trend and is assigned short-term B3 & long-term Ba3 estimated rating.
Q: What is the consensus rating of TIXT:TSX stock?
A: The consensus rating for TIXT:TSX is Speculative Trend.
Q: What is the prediction period for TIXT:TSX stock?
A: The prediction period for TIXT:TSX is 4 Weeks

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