Modelling A.I. in Economics

LON:XPP Stock Price Prediction

Outlook: XP POWER LIMITED is assigned short-term B1 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
Methodology : Statistical Inference (ML)
Hypothesis Testing : Polynomial 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.

Summary

XP POWER LIMITED prediction model is evaluated with Statistical Inference (ML) and Polynomial Regression1,2,3,4 and it is concluded that the LON:XPP stock is predictable in the short/long term. Statistical inference is a process of drawing conclusions about a population based on data from a sample of that population. In machine learning (ML), statistical inference is used to make predictions about new data based on data that has already been seen. According to price forecasts for 1 Year period, the dominant strategy among neural network is: Sell

Graph 50

Key Points

  1. What is statistical models in machine learning?
  2. Can statistics predict the future?
  3. Reaction Function

LON:XPP Target Price Prediction Modeling Methodology

We consider XP POWER LIMITED Decision Process with Statistical Inference (ML) where A is the set of discrete actions of LON:XPP 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(Polynomial 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(Statistical Inference (ML)) X S(n):→ 1 Year S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of LON:XPP stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Statistical Inference (ML)

Statistical inference is a process of drawing conclusions about a population based on data from a sample of that population. In machine learning (ML), statistical inference is used to make predictions about new data based on data that has already been seen.

Polynomial Regression

Polynomial regression is a type of regression analysis that uses a polynomial function to model the relationship between a dependent variable and one or more independent variables. Polynomial functions are mathematical functions that have a polynomial term, which is a term that is raised to a power greater than 1. In polynomial regression, the dependent variable is modeled as a polynomial function of the independent variables. The degree of the polynomial function is determined by the researcher. The higher the degree of the polynomial function, the more complex the model will be.

 

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:XPP Stock Forecast (Buy or Sell)

Sample Set: Neural Network
Stock/Index: LON:XPP XP POWER LIMITED
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 Statistical Inference (ML) based LON:XPP Stock Prediction Model

  1. In accordance with paragraph 4.1.3(a), principal is the fair value of the financial asset at initial recognition. However that principal amount may change over the life of the financial asset (for example, if there are repayments of principal).
  2. If a component of the cash flows of a financial or a non-financial item is designated as the hedged item, that component must be less than or equal to the total cash flows of the entire item. However, all of the cash flows of the entire item may be designated as the hedged item and hedged for only one particular risk (for example, only for those changes that are attributable to changes in LIBOR or a benchmark commodity price).
  3. The purpose of estimating expected credit losses is neither to estimate a worstcase scenario nor to estimate the best-case scenario. Instead, an estimate of expected credit losses shall always reflect the possibility that a credit loss occurs and the possibility that no credit loss occurs even if the most likely outcome is no credit loss.
  4. If the holder cannot assess the conditions in paragraph B4.1.21 at initial recognition, the tranche must be measured at fair value through profit or loss. If the underlying pool of instruments can change after initial recognition in such a way that the pool may not meet the conditions in paragraphs B4.1.23–B4.1.24, the tranche does not meet the conditions in paragraph B4.1.21 and must be measured at fair value through profit or loss. However, if the underlying pool includes instruments that are collateralised by assets that do not meet the conditions in paragraphs B4.1.23–B4.1.24, the ability to take possession of such assets shall be disregarded for the purposes of applying this paragraph unless the entity acquired the tranche with the intention of controlling the collateral.

*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:XPP XP POWER LIMITED Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B1B3
Income StatementCCaa2
Balance SheetBaa2C
Leverage RatiosBa3Baa2
Cash FlowB2C
Rates of Return and ProfitabilityB1Caa2

*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

XP POWER LIMITED is assigned short-term B1 & long-term B3 estimated rating. XP POWER LIMITED prediction model is evaluated with Statistical Inference (ML) and Polynomial Regression1,2,3,4 and it is concluded that the LON:XPP 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: 73 out of 100 with 599 signals.

References

  1. Li L, Chen S, Kleban J, Gupta A. 2014. Counterfactual estimation and optimization of click metrics for search engines: a case study. In Proceedings of the 24th International Conference on the World Wide Web, pp. 929–34. New York: ACM
  2. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
  3. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
  4. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
  5. Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35
  6. V. Borkar. An actor-critic algorithm for constrained Markov decision processes. Systems & Control Letters, 54(3):207–213, 2005.
  7. Jacobs B, Donkers B, Fok D. 2014. Product Recommendations Based on Latent Purchase Motivations. Rotterdam, Neth.: ERIM
Frequently Asked QuestionsQ: What is the prediction methodology for LON:XPP stock?
A: LON:XPP stock prediction methodology: We evaluate the prediction models Statistical Inference (ML) and Polynomial Regression
Q: Is LON:XPP stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:XPP Stock.
Q: Is XP POWER LIMITED stock a good investment?
A: The consensus rating for XP POWER LIMITED is Sell and is assigned short-term B1 & long-term B3 estimated rating.
Q: What is the consensus rating of LON:XPP stock?
A: The consensus rating for LON:XPP is Sell.
Q: What is the prediction period for LON:XPP stock?
A: The prediction period for LON:XPP is 1 Year

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