Modelling A.I. in Economics

Where Will OPEN Stock Be in 1 Year?

Outlook: Opendoor Technologies Inc Common Stock is assigned short-term B2 & long-term Ba3 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 Volatility Analysis)
Hypothesis Testing : Ridge 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

Opendoor Technologies Inc Common Stock prediction model is evaluated with Modular Neural Network (Market Volatility Analysis) and Ridge Regression1,2,3,4 and it is concluded that the OPEN 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 volatility 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 volatility analysis, MNNs can be used to identify patterns in market data that suggest that the market is becoming more or less volatile. This information can then be used to make predictions about future price movements.5 According to price forecasts for 1 Year period, the dominant strategy among neural network is: Hold

Graph 34

Key Points

  1. Modular Neural Network (Market Volatility Analysis) for OPEN stock price prediction process.
  2. Ridge Regression
  3. Buy, Sell and Hold Signals
  4. Buy, Sell and Hold Signals
  5. Trading Interaction

OPEN Stock Price Forecast

We consider Opendoor Technologies Inc Common Stock Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of OPEN 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: OPEN Opendoor Technologies Inc Common Stock
Time series to forecast: 1 Year

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


F(Ridge 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(Modular Neural Network (Market Volatility Analysis)) X S(n):→ 1 Year R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of OPEN stock

j:Nash equilibria (Neural Network)

k:Dominated move of OPEN stock holders

a:Best response for OPEN target price


Modular neural networks (MNNs) are a type of artificial neural network that can be used for market volatility 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 volatility analysis, MNNs can be used to identify patterns in market data that suggest that the market is becoming more or less volatile. This information can then be used to make predictions about future price movements.5 Ridge regression 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. This is done by adding a term to the objective function that is proportional to the sum of the squares of the coefficients. The penalty term is called the "ridge" penalty, and it is controlled by a parameter called the "ridge constant". Ridge regression can be used to address the problem of multicollinearity in linear regression. 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. Ridge regression can help to reduce the standard errors of the coefficients and to make the coefficients more stable.6,7

 

For further technical information as per how our model work we invite you to visit the article below: 

How do Predictive A.I. algorithms actually work?

OPEN 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 Volatility Analysis) based OPEN Stock Prediction Model

  1. At the date of initial application, an entity shall determine whether the treatment in paragraph 5.7.7 would create or enlarge an accounting mismatch in profit or loss on the basis of the facts and circumstances that exist at the date of initial application. This Standard shall be applied retrospectively on the basis of that determination.
  2. For the purpose of applying paragraph 6.5.11, at the point when an entity amends the description of a hedged item as required in paragraph 6.9.1(b), the amount accumulated in the cash flow hedge reserve shall be deemed to be based on the alternative benchmark rate on which the hedged future cash flows are determined.
  3. The requirements in paragraphs 6.8.4–6.8.8 may cease to apply at different times. Therefore, in applying paragraph 6.9.1, an entity may be required to amend the formal designation of its hedging relationships at different times, or may be required to amend the formal designation of a hedging relationship more than once. When, and only when, such a change is made to the hedge designation, an entity shall apply paragraphs 6.9.7–6.9.12 as applicable. An entity also shall apply paragraph 6.5.8 (for a fair value hedge) or paragraph 6.5.11 (for a cash flow hedge) to account for any changes in the fair value of the hedged item or the hedging instrument.
  4. If, at the date of initial application, determining whether there has been a significant increase in credit risk since initial recognition would require undue cost or effort, an entity shall recognise a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised (unless that financial instrument is low credit risk at a reporting date, in which case paragraph 7.2.19(a) applies).

*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.

OPEN Opendoor Technologies Inc Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Income StatementBaa2Baa2
Balance SheetB2Ba2
Leverage RatiosCCaa2
Cash FlowB2B3
Rates of Return and ProfitabilityCB1

*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. Apple's Stock Price: How News Affects Volatility. AC Investment Research Journal, 220(44).
  2. Chipman HA, George EI, McCulloch RE. 2010. Bart: Bayesian additive regression trees. Ann. Appl. Stat. 4:266–98
  3. Artis, M. J. W. Zhang (1990), "BVAR forecasts for the G-7," International Journal of Forecasting, 6, 349–362.
  4. Abadir, K. M., K. Hadri E. Tzavalis (1999), "The influence of VAR dimensions on estimator biases," Econometrica, 67, 163–181.
  5. Chamberlain G. 2000. Econometrics and decision theory. J. Econom. 95:255–83
  6. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  7. Chow, G. C. (1960), "Tests of equality between sets of coefficients in two linear regressions," Econometrica, 28, 591–605.
Frequently Asked QuestionsQ: Is OPEN stock expected to rise?
A: OPEN stock prediction model is evaluated with Modular Neural Network (Market Volatility Analysis) and Ridge Regression and it is concluded that dominant strategy for OPEN stock is Hold
Q: Is OPEN stock a buy or sell?
A: The dominant strategy among neural network is to Hold OPEN Stock.
Q: Is Opendoor Technologies Inc Common Stock stock a good investment?
A: The consensus rating for Opendoor Technologies Inc Common Stock is Hold and is assigned short-term B2 & long-term Ba3 estimated rating.
Q: What is the consensus rating of OPEN stock?
A: The consensus rating for OPEN is Hold.
Q: What is the forecast for OPEN stock?
A: OPEN target price forecast: Hold
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