Modelling A.I. in Economics

Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share Forecast & Analysis

Outlook: Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share is assigned short-term B2 & 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 : Active Learning (ML)
Hypothesis Testing : Lasso 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.


Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share prediction model is evaluated with Active Learning (ML) and Lasso Regression1,2,3,4 and it is concluded that the PSA^Q stock is predictable in the short/long term. Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.5 According to price forecasts for 3 Month period, the dominant strategy among neural network is: Sell

Graph 25

Key Points

  1. What is the best way to predict stock prices?
  2. Dominated Move
  3. Can neural networks predict stock market?

PSA^Q Stock Price Forecast

We consider Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share Decision Process with Active Learning (ML) where A is the set of discrete actions of PSA^Q 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: PSA^Q Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share
Time series to forecast: 3 Month

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


F(Lasso Regression)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(Active Learning (ML)) X S(n):→ 3 Month S = s 1 s 2 s 3

n:Time series to forecast

p:Price signals of PSA^Q stock

j:Nash equilibria (Neural Network)

k:Dominated move of PSA^Q stock holders

a:Best response for PSA^Q target price


Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.5 Lasso regression, also known as L1 regularization, is a type of regression analysis that adds a penalty to the least squares objective function in order to reduce the variance of the estimates and to induce sparsity in the model. This is done by adding a term to the objective function that is proportional to the sum of the absolute values of the coefficients. The penalty term is called the "lasso" penalty, and it is controlled by a parameter called the "lasso constant". Lasso regression can be used to address the problem of multicollinearity in linear regression, as well as the problem of overfitting. Multicollinearity occurs when two or more independent variables are highly correlated. This can cause the standard errors of the coefficients to be large, and it can also cause the coefficients to be unstable. Overfitting occurs when a model is too closely fit to the training data, and as a result, it does not generalize well to new data.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?

PSA^Q 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 Active Learning (ML) based PSA^Q Stock Prediction Model

  1. An entity's estimate of expected credit losses on loan commitments shall be consistent with its expectations of drawdowns on that loan commitment, ie it shall consider the expected portion of the loan commitment that will be drawn down within 12 months of the reporting date when estimating 12-month expected credit losses, and the expected portion of the loan commitment that will be drawn down over the expected life of the loan commitment when estimating lifetime expected credit losses.
  2. The characteristics of the hedged item, including how and when the hedged item affects profit or loss, also affect the period over which the forward element of a forward contract that hedges a time-period related hedged item is amortised, which is over the period to which the forward element relates. For example, if a forward contract hedges the exposure to variability in threemonth interest rates for a three-month period that starts in six months' time, the forward element is amortised during the period that spans months seven to nine.
  3. In some circumstances an entity does not have reasonable and supportable information that is available without undue cost or effort to measure lifetime expected credit losses on an individual instrument basis. In that case, lifetime expected credit losses shall be recognised on a collective basis that considers comprehensive credit risk information. This comprehensive credit risk information must incorporate not only past due information but also all relevant credit information, including forward-looking macroeconomic information, in order to approximate the result of recognising lifetime expected credit losses when there has been a significant increase in credit risk since initial recognition on an individual instrument level.
  4. If an entity prepares interim financial reports in accordance with IAS 34 Interim Financial Reporting the entity need not apply the requirements in this Standard to interim periods prior to the date of initial application if it is impracticable (as defined in 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.

PSA^Q Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Income StatementCB1
Balance SheetBa3Baa2
Leverage RatiosBaa2B2
Cash FlowCaa2Caa2
Rates of Return and ProfitabilityB2B2

*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

  1. M. J. Hausknecht. Cooperation and Communication in Multiagent Deep Reinforcement Learning. PhD thesis, The University of Texas at Austin, 2016
  2. Barrett, C. B. (1997), "Heteroscedastic price forecasting for food security management in developing countries," Oxford Development Studies, 25, 225–236.
  3. Cortes C, Vapnik V. 1995. Support-vector networks. Mach. Learn. 20:273–97
  4. 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
  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. D. S. Bernstein, S. Zilberstein, and N. Immerman. The complexity of decentralized control of Markov Decision Processes. In UAI '00: Proceedings of the 16th Conference in Uncertainty in Artificial Intelligence, Stanford University, Stanford, California, USA, June 30 - July 3, 2000, pages 32–37, 2000.
  7. Barkan O. 2016. Bayesian neural word embedding. arXiv:1603.06571 [math.ST]
Frequently Asked QuestionsQ: What is the prediction methodology for PSA^Q stock?
A: PSA^Q stock prediction methodology: We evaluate the prediction models Active Learning (ML) and Lasso Regression
Q: Is PSA^Q stock a buy or sell?
A: The dominant strategy among neural network is to Sell PSA^Q Stock.
Q: Is Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share stock a good investment?
A: The consensus rating for Public Storage Depositary Shares Each Representing 1/1000 of a 3.950% Cumulative Preferred Share of Beneficial Interest Series Q par value $0.01 per share is Sell and is assigned short-term B2 & long-term Ba3 estimated rating.
Q: What is the consensus rating of PSA^Q stock?
A: The consensus rating for PSA^Q is Sell.
Q: What is the prediction period for PSA^Q stock?
A: The prediction period for PSA^Q is 3 Month
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