Modelling A.I. in Economics

Is LON:GNS Stock Buy or Sell?

Outlook: GENUS PLC is assigned short-term B1 & long-term Ba3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (DNN Layer)
Hypothesis Testing : Statistical Hypothesis Testing
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

GENUS PLC prediction model is evaluated with Modular Neural Network (DNN Layer) and Statistical Hypothesis Testing1,2,3,4 and it is concluded that the LON:GNS stock is predictable in the short/long term. In a modular neural network (MNN), a DNN layer is a type of module that is used to learn complex relationships between input and output data. DNN layers are made up of a series of artificial neurons, which are connected to each other by weighted edges. The weights of the edges are adjusted during training to minimize the error between the network's predictions and the desired output. DNN layers are used in a variety of MNN applications, including natural language processing, speech recognition, and machine translation. In natural language processing, DNN layers are used to extract features from text data, such as the sentiment of a sentence or the topic of a conversation. In speech recognition, DNN layers are used to convert audio data into text data. In machine translation, DNN layers are used to translate text from one language to another. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Graph 18

Key Points

  1. Trading Interaction
  2. How can neural networks improve predictions?
  3. Buy, Sell and Hold Signals

LON:GNS Target Price Prediction Modeling Methodology

We consider GENUS PLC Decision Process with Modular Neural Network (DNN Layer) where A is the set of discrete actions of LON:GNS 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(Statistical Hypothesis Testing)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 (DNN Layer)) X S(n):→ 1 Year i = 1 n r i

n:Time series to forecast

p:Price signals of LON:GNS stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Modular Neural Network (DNN Layer)

In a modular neural network (MNN), a DNN layer is a type of module that is used to learn complex relationships between input and output data. DNN layers are made up of a series of artificial neurons, which are connected to each other by weighted edges. The weights of the edges are adjusted during training to minimize the error between the network's predictions and the desired output. DNN layers are used in a variety of MNN applications, including natural language processing, speech recognition, and machine translation. In natural language processing, DNN layers are used to extract features from text data, such as the sentiment of a sentence or the topic of a conversation. In speech recognition, DNN layers are used to convert audio data into text data. In machine translation, DNN layers are used to translate text from one language to another.

Statistical Hypothesis Testing

Statistical hypothesis testing is a process used to determine whether there is enough evidence to support a claim about a population based on a sample. The process involves making two hypotheses, a null hypothesis and an alternative hypothesis, and then collecting data and using statistical tests to determine which hypothesis is more likely to be true. The null hypothesis is the statement that there is no difference between the population and the sample. The alternative hypothesis is the statement that there is a difference between the population and the sample. The statistical test is used to calculate a p-value, which is the probability of obtaining the observed data or more extreme data if the null hypothesis is true. A p-value of less than 0.05 is typically considered to be statistically significant, which means that there is less than a 5% chance of obtaining the observed data or more extreme data if the null hypothesis is true.

 

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:GNS Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:GNS GENUS PLC
Time series to forecast: 1 Year

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 Modular Neural Network (DNN Layer) based LON:GNS Stock Prediction Model

  1. To be eligible for designation as a hedged item, a risk component must be a separately identifiable component of the financial or the non-financial item, and the changes in the cash flows or the fair value of the item attributable to changes in that risk component must be reliably measurable.
  2. An entity must look through until it can identify the underlying pool of instruments that are creating (instead of passing through) the cash flows. This is the underlying pool of financial instruments.
  3. If an entity has applied paragraph 7.2.6 then at the date of initial application the entity shall recognise any difference between the fair value of the entire hybrid contract at the date of initial application and the sum of the fair values of the components of the hybrid contract at the date of initial application in the opening retained earnings (or other component of equity, as appropriate) of the reporting period that includes the date of initial application.
  4. In the reporting period that includes the date of initial application of these amendments, an entity is not required to present the quantitative information required by paragraph 28(f) of 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:GNS GENUS PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B1Ba3
Income StatementBaa2Ba3
Balance SheetCCaa2
Leverage RatiosB2Baa2
Cash FlowCC
Rates of Return and ProfitabilityBaa2Baa2

*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

GENUS PLC is assigned short-term B1 & long-term Ba3 estimated rating. GENUS PLC prediction model is evaluated with Modular Neural Network (DNN Layer) and Statistical Hypothesis Testing1,2,3,4 and it is concluded that the LON:GNS stock is predictable in the short/long term. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Prediction Confidence Score

Trust metric by Neural Network: 82 out of 100 with 840 signals.

References

  1. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
  2. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
  3. R. Rockafellar and S. Uryasev. Optimization of conditional value-at-risk. Journal of Risk, 2:21–42, 2000.
  4. G. Theocharous and A. Hallak. Lifetime value marketing using reinforcement learning. RLDM 2013, page 19, 2013
  5. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  6. A. Y. Ng, D. Harada, and S. J. Russell. Policy invariance under reward transformations: Theory and application to reward shaping. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 278–287, 1999.
  7. Bengio Y, Ducharme R, Vincent P, Janvin C. 2003. A neural probabilistic language model. J. Mach. Learn. Res. 3:1137–55
Frequently Asked QuestionsQ: What is the prediction methodology for LON:GNS stock?
A: LON:GNS stock prediction methodology: We evaluate the prediction models Modular Neural Network (DNN Layer) and Statistical Hypothesis Testing
Q: Is LON:GNS stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:GNS Stock.
Q: Is GENUS PLC stock a good investment?
A: The consensus rating for GENUS PLC is Sell and is assigned short-term B1 & long-term Ba3 estimated rating.
Q: What is the consensus rating of LON:GNS stock?
A: The consensus rating for LON:GNS is Sell.
Q: What is the prediction period for LON:GNS stock?
A: The prediction period for LON:GNS is 1 Year

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