Modelling A.I. in Economics

Should You Buy Now or Wait? LON:FDP Stock Forecast

Outlook: FD TECHNOLOGIES PUBLIC LIMITED COMPANY is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Speculative Trend
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (Financial Sentiment Analysis)
Hypothesis Testing : Pearson Correlation
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.


FD TECHNOLOGIES PUBLIC LIMITED COMPANY prediction model is evaluated with Modular Neural Network (Financial Sentiment Analysis) and Pearson Correlation1,2,3,4 and it is concluded that the LON:FDP stock is predictable in the short/long term. Modular neural networks (MNNs) are a type of artificial neural network that can be used for financial sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of financial sentiment analysis, MNNs can be used to identify the sentiment of financial news articles, social media posts, and other forms of online content. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising. According to price forecasts for 6 Month period, the dominant strategy among neural network is: Speculative Trend

Graph 12

Key Points

  1. Dominated Move
  2. Should I buy stocks now or wait amid such uncertainty?
  3. Why do we need predictive models?

LON:FDP Stock Price Forecast

We consider FD TECHNOLOGIES PUBLIC LIMITED COMPANY Decision Process with Modular Neural Network (Financial Sentiment Analysis) where A is the set of discrete actions of LON:FDP 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: LON:FDP FD TECHNOLOGIES PUBLIC LIMITED COMPANY
Time series to forecast: 6 Month

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


F(Pearson Correlation)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 (Financial Sentiment Analysis)) X S(n):→ 6 Month i = 1 n r i

n:Time series to forecast

p:Price signals of LON:FDP stock

j:Nash equilibria (Neural Network)

k:Dominated move of LON:FDP stock holders

a:Best response for LON:FDP target price


Modular neural networks (MNNs) are a type of artificial neural network that can be used for financial sentiment analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of financial sentiment analysis, MNNs can be used to identify the sentiment of financial news articles, social media posts, and other forms of online content. This information can then be used to make investment decisions, to identify trends in the market, and to target investors with relevant advertising.Pearson correlation, also known as Pearson's product-moment correlation, is a measure of the linear relationship between two variables. It is a statistical measure that assesses the strength and direction of a linear relationship between two variables. The sign of the correlation coefficient indicates the direction of the relationship, while the magnitude of the correlation coefficient indicates the strength of the relationship. A correlation coefficient of 0.9 indicates a strong positive correlation, while a correlation coefficient of 0.2 indicates a weak positive correlation.

 

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:FDP 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 (Financial Sentiment Analysis) based LON:FDP Stock Prediction Model

  1. Unless paragraph 6.8.8 applies, for a hedge of a non-contractually specified benchmark component of interest rate risk, an entity shall apply the requirement in paragraphs 6.3.7(a) and B6.3.8—that the risk component shall be separately identifiable—only at the inception of the hedging relationship.
  2. An example of a fair value hedge is a hedge of exposure to changes in the fair value of a fixed-rate debt instrument arising from changes in interest rates. Such a hedge could be entered into by the issuer or by the holder.
  3. An entity shall apply this Standard for annual periods beginning on or after 1 January 2018. Earlier application is permitted. If an entity elects to apply this Standard early, it must disclose that fact and apply all of the requirements in this Standard at the same time (but see also paragraphs 7.1.2, 7.2.21 and 7.3.2). It shall also, at the same time, apply the amendments in Appendix C.
  4. If an entity measures a hybrid contract at fair value in accordance with paragraphs 4.1.2A, 4.1.4 or 4.1.5 but the fair value of the hybrid contract had not been measured in comparative reporting periods, the fair value of the hybrid contract in the comparative reporting periods shall be the sum of the fair values of the components (ie the non-derivative host and the embedded derivative) at the end of each comparative reporting period if the entity restates prior periods (see paragraph 7.2.15).

*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:FDP FD TECHNOLOGIES PUBLIC LIMITED COMPANY Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba3B1
Income StatementCBaa2
Balance SheetB3B3
Leverage RatiosBaa2C
Cash FlowBaa2C
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?

References

  1. Jorgenson, D.W., Weitzman, M.L., ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Tesla Stock: Hold for Now, But Watch for Opportunities. AC Investment Research Journal, 220(44).
  2. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
  3. F. A. Oliehoek, M. T. J. Spaan, and N. A. Vlassis. Optimal and approximate q-value functions for decentralized pomdps. J. Artif. Intell. Res. (JAIR), 32:289–353, 2008
  4. Jorgenson, D.W., Weitzman, M.L., ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Can Neural Networks Predict Stock Market?. AC Investment Research Journal, 220(44).
  5. J. Peters, S. Vijayakumar, and S. Schaal. Natural actor-critic. In Proceedings of the Sixteenth European Conference on Machine Learning, pages 280–291, 2005.
  6. V. Borkar. An actor-critic algorithm for constrained Markov decision processes. Systems & Control Letters, 54(3):207–213, 2005.
  7. Armstrong, J. S. M. C. Grohman (1972), "A comparative study of methods for long-range market forecasting," Management Science, 19, 211–221.
Frequently Asked QuestionsQ: What is the prediction methodology for LON:FDP stock?
A: LON:FDP stock prediction methodology: We evaluate the prediction models Modular Neural Network (Financial Sentiment Analysis) and Pearson Correlation
Q: Is LON:FDP stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend LON:FDP Stock.
Q: Is FD TECHNOLOGIES PUBLIC LIMITED COMPANY stock a good investment?
A: The consensus rating for FD TECHNOLOGIES PUBLIC LIMITED COMPANY is Speculative Trend and is assigned short-term Ba3 & long-term B1 estimated rating.
Q: What is the consensus rating of LON:FDP stock?
A: The consensus rating for LON:FDP is Speculative Trend.
Q: What is the prediction period for LON:FDP stock?
A: The prediction period for LON:FDP is 6 Month

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