Modelling A.I. in Economics

LON:MPE Stock: Soars on Positive Economic Data

Outlook: M.P. EVANS GROUP PLC is assigned short-term B2 & long-term B1 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 : Logistic Regression
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

M.P. EVANS GROUP PLC prediction model is evaluated with Reinforcement Machine Learning (ML) and Logistic Regression1,2,3,4 and it is concluded that the LON:MPE 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 3 Month period, the dominant strategy among neural network is: Buy

Graph 15

Key Points

  1. Buy, Sell and Hold Signals
  2. Is Target price a good indicator?
  3. What is prediction in deep learning?

LON:MPE Target Price Prediction Modeling Methodology

We consider M.P. EVANS GROUP PLC Decision Process with Reinforcement Machine Learning (ML) where A is the set of discrete actions of LON:MPE 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(Logistic Regression)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(Reinforcement Machine Learning (ML)) X S(n):→ 3 Month e x rx

n:Time series to forecast

p:Price signals of LON:MPE 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.

Logistic Regression

In statistics, logistic regression is a type of regression analysis used when the dependent variable is categorical. Logistic regression is a probability model that predicts the probability of an event occurring based on a set of independent variables. In logistic regression, the dependent variable is represented as a binary variable, such as "yes" or "no," "true" or "false," or "sick" or "healthy." The independent variables can be continuous or categorical variables.

 

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:MPE Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:MPE M.P. EVANS GROUP PLC
Time series to forecast: 3 Month

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 LON:MPE Stock Prediction Model

  1. An entity shall assess whether contractual cash flows are solely payments of principal and interest on the principal amount outstanding for the currency in which the financial asset is denominated.
  2. If any instrument in the pool does not meet the conditions in either paragraph B4.1.23 or paragraph B4.1.24, the condition in paragraph B4.1.21(b) is not met. In performing this assessment, a detailed instrument-byinstrument analysis of the pool may not be necessary. However, an entity must use judgement and perform sufficient analysis to determine whether the instruments in the pool meet the conditions in paragraphs B4.1.23–B4.1.24. (See also paragraph B4.1.18 for guidance on contractual cash flow characteristics that have only a de minimis effect.)
  3. When determining whether the recognition of lifetime expected credit losses is required, an entity shall consider reasonable and supportable information that is available without undue cost or effort and that may affect the credit risk on a financial instrument in accordance with paragraph 5.5.17(c). An entity need not undertake an exhaustive search for information when determining whether credit risk has increased significantly since initial recognition.
  4. If a put option written by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at fair value, the associated liability is measured at the option exercise price plus the time value of the option. The measurement of the asset at fair value is limited to the lower of the fair value and the option exercise price because the entity has no right to increases in the fair value of the transferred asset above the exercise price of the option. This ensures that the net carrying amount of the asset and the associated liability is the fair value of the put option obligation. For example, if the fair value of the underlying asset is CU120, the option exercise price is CU100 and the time value of the option is CU5, the carrying amount of the associated liability is CU105 (CU100 + CU5) and the carrying amount of the asset is CU100 (in this case the option exercise price).

*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:MPE M.P. EVANS GROUP PLC Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2B1
Income StatementCB1
Balance SheetBa2B2
Leverage RatiosBaa2C
Cash FlowB3Baa2
Rates of Return and ProfitabilityB2Baa2

*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

M.P. EVANS GROUP PLC is assigned short-term B2 & long-term B1 estimated rating. M.P. EVANS GROUP PLC prediction model is evaluated with Reinforcement Machine Learning (ML) and Logistic Regression1,2,3,4 and it is concluded that the LON:MPE stock is predictable in the short/long term. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Buy

Prediction Confidence Score

Trust metric by Neural Network: 80 out of 100 with 497 signals.

References

  1. J. N. Foerster, Y. M. Assael, N. de Freitas, and S. Whiteson. Learning to communicate with deep multi-agent reinforcement learning. In Advances in Neural Information Processing Systems 29: Annual Conference on Neural Information Processing Systems 2016, December 5-10, 2016, Barcelona, Spain, pages 2137–2145, 2016.
  2. Bierens HJ. 1987. Kernel estimators of regression functions. In Advances in Econometrics: Fifth World Congress, Vol. 1, ed. TF Bewley, pp. 99–144. Cambridge, UK: Cambridge Univ. Press
  3. Andrews, D. W. K. (1993), "Tests for parameter instability and structural change with unknown change point," Econometrica, 61, 821–856.
  4. Athey S, Bayati M, Doudchenko N, Imbens G, Khosravi K. 2017a. Matrix completion methods for causal panel data models. arXiv:1710.10251 [math.ST]
  5. R. Sutton and A. Barto. Reinforcement Learning. The MIT Press, 1998
  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. R. Rockafellar and S. Uryasev. Conditional value-at-risk for general loss distributions. Journal of Banking and Finance, 26(7):1443 – 1471, 2002
Frequently Asked QuestionsQ: What is the prediction methodology for LON:MPE stock?
A: LON:MPE stock prediction methodology: We evaluate the prediction models Reinforcement Machine Learning (ML) and Logistic Regression
Q: Is LON:MPE stock a buy or sell?
A: The dominant strategy among neural network is to Buy LON:MPE Stock.
Q: Is M.P. EVANS GROUP PLC stock a good investment?
A: The consensus rating for M.P. EVANS GROUP PLC is Buy and is assigned short-term B2 & long-term B1 estimated rating.
Q: What is the consensus rating of LON:MPE stock?
A: The consensus rating for LON:MPE is Buy.
Q: What is the prediction period for LON:MPE stock?
A: The prediction period for LON:MPE is 3 Month

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