Is AKO/B Stock Buy or Sell?

Name: Is AKO/B Stock Buy or Sell?
Uploaded: Friday, October 27, 2023
Duration: 37 min 14 s
Description: Is AKO/B Stock Buy or Sell?

Outlook: Embotelladora Andina S.A. is assigned short-term Ba2 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Hold
Time series to forecast n: for Weeks²
Methodology : Modular Neural Network (Market Direction Analysis)
Hypothesis Testing : ElasticNet 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.

Embotelladora Andina S.A. prediction model is evaluated with Modular Neural Network (Market Direction Analysis) and ElasticNet Regression^1,2,3,4 and it is concluded that the AKO/B stock is predictable in the short/long term. Modular neural networks (MNNs) are a type of artificial neural network that can be used for market direction analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying patterns in data or predicting future price movements. The modules are then combined to form a single neural network that can perform multiple tasks.In the context of market direction analysis, MNNs can be used to identify patterns in market data that suggest that the market is likely to move in a particular direction. This information can then be used to make predictions about future price movements.⁵ According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Hold

Key Points

Why do we need predictive models?
Trust metric by Neural Network
What is prediction in deep learning?

AKO/B Stock Price Forecast

We consider Embotelladora Andina S.A. Decision Process with Modular Neural Network (Market Direction Analysis) where A is the set of discrete actions of AKO/B 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

Sample Set: Neural Network
Stock/Index: AKO/B Embotelladora Andina S.A.
Time series to forecast: 16 Weeks

According to price forecasts, the dominant strategy among neural network is: Hold

F(ElasticNet Regression)^6,7=

\begin{matrix} p_{a 1} & p_{a 2} & \dots & p_{1 n} \\ ⋮ \\ p_{j 1} & p_{j 2} & \dots & p_{j n} \\ ⋮ \\ p_{k 1} & p_{k 2} & \dots & p_{k n} \\ ⋮ \\ p_{n 1} & p_{n 2} & \dots & p_{n n} \end{matrix}

X R(Modular Neural Network (Market Direction Analysis)) X S(n):→ 16 Weeks

\vec{R} = (r_{1}, r_{2}, r_{3})

n:Time series to forecast

p:Price signals of AKO/B stock

j:Nash equilibria (Neural Network)

k:Dominated move of AKO/B stock holders

a:Best response for AKO/B target price

Modular neural networks (MNNs) are a type of artificial neural network that can be used for market direction analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying patterns in data or predicting future price movements. The modules are then combined to form a single neural network that can perform multiple tasks.In the context of market direction analysis, MNNs can be used to identify patterns in market data that suggest that the market is likely to move in a particular direction. This information can then be used to make predictions about future price movements.⁵ Elastic net regression is a type of regression analysis that combines the benefits of ridge regression and lasso regression. It is a regularized regression method that adds a penalty to the least squares objective function in order to reduce the variance of the estimates, induce sparsity in the model, and reduce overfitting. This is done by adding a term to the objective function that is proportional to the sum of the squares of the coefficients and the sum of the absolute values of the coefficients. The penalty terms are controlled by two parameters, called the ridge constant and the lasso constant. Elastic net regression can be used to address the problems of multicollinearity, overfitting, and sensitivity to outliers. It is a more flexible method than ridge regression or lasso regression, and it can often achieve better results.^6,7

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?

AKO/B Stock Forecast (Buy or Sell) Strategic Interaction Table

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 (Market Direction Analysis) based AKO/B Stock Prediction Model

At the date of initial application, an entity shall assess whether a financial asset meets the condition in paragraphs 4.1.2(a) or 4.1.2A(a) on the basis of the facts and circumstances that exist at that date. The resulting classification shall be applied retrospectively irrespective of the entity's business model in prior reporting periods.
In some circumstances, the renegotiation or modification of the contractual cash flows of a financial asset can lead to the derecognition of the existing financial asset in accordance with this Standard. When the modification of a financial asset results in the derecognition of the existing financial asset and the subsequent recognition of the modified financial asset, the modified asset is considered a 'new' financial asset for the purposes of this Standard.
Changes in market conditions that give rise to market risk include changes in a benchmark interest rate, the price of another entity's financial instrument, a commodity price, a foreign exchange rate or an index of prices or rates.
If, in applying paragraph 7.2.44, an entity reinstates a discontinued hedging relationship, the entity shall read references in paragraphs 6.9.11 and 6.9.12 to the date the alternative benchmark rate is designated as a noncontractually specified risk component for the first time as referring to the date of initial application of these amendments (ie the 24-month period for that alternative benchmark rate designated as a non-contractually specified risk component begins from the date of initial application of these amendments).

*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.

AKO/B Embotelladora Andina S.A. Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba2	B1
Income Statement	Ba3	C
Balance Sheet	Baa2	C
Leverage Ratios	Baa2	Baa2
Cash Flow	Caa2	Baa2
Rates of Return and Profitability	Ba1	B2

*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?

References

White H. 1992. Artificial Neural Networks: Approximation and Learning Theory. Oxford, UK: Blackwell
Burkov A. 2019. The Hundred-Page Machine Learning Book. Quebec City, Can.: Andriy Burkov
J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
Bessler, D. A. T. Covey (1991), "Cointegration: Some results on U.S. cattle prices," Journal of Futures Markets, 11, 461–474.
Alexander, J. C. Jr. (1995), "Refining the degree of earnings surprise: A comparison of statistical and analysts' forecasts," Financial Review, 30, 469–506.
Bengio Y, Schwenk H, Senécal JS, Morin F, Gauvain JL. 2006. Neural probabilistic language models. In Innovations in Machine Learning: Theory and Applications, ed. DE Holmes, pp. 137–86. Berlin: Springer
Imbens GW, Lemieux T. 2008. Regression discontinuity designs: a guide to practice. J. Econom. 142:615–35

Frequently Asked Questions

Q: What is the prediction methodology for AKO/B stock?
A: AKO/B stock prediction methodology: We evaluate the prediction models Modular Neural Network (Market Direction Analysis) and ElasticNet Regression
Q: Is AKO/B stock a buy or sell?
A: The dominant strategy among neural network is to Hold AKO/B Stock.
Q: Is Embotelladora Andina S.A. stock a good investment?
A: The consensus rating for Embotelladora Andina S.A. is Hold and is assigned short-term Ba2 & long-term B1 estimated rating.
Q: What is the consensus rating of AKO/B stock?
A: The consensus rating for AKO/B is Hold.
Q: What is the prediction period for AKO/B stock?
A: The prediction period for AKO/B is 16 Weeks

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