Modelling A.I. in Economics

CWAN Stock: Future is Bright, but The Road Ahead is Bumpy

Outlook: Clearwater Analytics Holdings Inc. Class A Common Stock is assigned short-term Ba2 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Buy
Time series to forecast n: for Weeks2
Methodology : Ensemble Learning (ML)
Hypothesis Testing : Statistical Hypothesis Testing
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

Clearwater Analytics Holdings Inc. Class A Common Stock prediction model is evaluated with Ensemble Learning (ML) and Statistical Hypothesis Testing1,2,3,4 and it is concluded that the CWAN stock is predictable in the short/long term. Ensemble learning is a machine learning (ML) technique that combines multiple models to create a single model that is more accurate than any of the individual models. This is done by combining the predictions of the individual models, typically using a voting scheme or a weighted average.5 According to price forecasts for 1 Year period, the dominant strategy among neural network is: Buy

Graph 51

Key Points

  1. Ensemble Learning (ML) for CWAN stock price prediction process.
  2. Statistical Hypothesis Testing
  3. Trading Signals
  4. Fundemental Analysis with Algorithmic Trading
  5. Can statistics predict the future?

CWAN Stock Price Forecast

We consider Clearwater Analytics Holdings Inc. Class A Common Stock Decision Process with Ensemble Learning (ML) where A is the set of discrete actions of CWAN 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: CWAN Clearwater Analytics Holdings Inc. Class A Common Stock
Time series to forecast: 1 Year

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


F(Statistical Hypothesis Testing)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(Ensemble Learning (ML)) X S(n):→ 1 Year i = 1 n s i

n:Time series to forecast

p:Price signals of CWAN stock

j:Nash equilibria (Neural Network)

k:Dominated move of CWAN stock holders

a:Best response for CWAN target price


Ensemble learning is a machine learning (ML) technique that combines multiple models to create a single model that is more accurate than any of the individual models. This is done by combining the predictions of the individual models, typically using a voting scheme or a weighted average.5 Statistical hypothesis testing is a process used to determine whether there is enough evidence to support a claim about a population based on a sample. The process involves making two hypotheses, a null hypothesis and an alternative hypothesis, and then collecting data and using statistical tests to determine which hypothesis is more likely to be true. The null hypothesis is the statement that there is no difference between the population and the sample. The alternative hypothesis is the statement that there is a difference between the population and the sample. The statistical test is used to calculate a p-value, which is the probability of obtaining the observed data or more extreme data if the null hypothesis is true. A p-value of less than 0.05 is typically considered to be statistically significant, which means that there is less than a 5% chance of obtaining the observed data or more extreme data if the null hypothesis is true.6,7

 

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

How do PredictiveAI algorithms actually work?

CWAN 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 Ensemble Learning (ML) based CWAN Stock Prediction Model

  1. When an entity separates the foreign currency basis spread from a financial instrument and excludes it from the designation of that financial instrument as the hedging instrument (see paragraph 6.2.4(b)), the application guidance in paragraphs B6.5.34–B6.5.38 applies to the foreign currency basis spread in the same manner as it is applied to the forward element of a forward contract.
  2. The assessment of whether an economic relationship exists includes an analysis of the possible behaviour of the hedging relationship during its term to ascertain whether it can be expected to meet the risk management objective. The mere existence of a statistical correlation between two variables does not, by itself, support a valid conclusion that an economic relationship exists.
  3. An entity shall assess separately whether each subgroup meets the requirements in paragraph 6.6.1 to be an eligible hedged item. If any subgroup fails to meet the requirements in paragraph 6.6.1, the entity shall discontinue hedge accounting prospectively for the hedging relationship in its entirety. An entity also shall apply the requirements in paragraphs 6.5.8 and 6.5.11 to account for ineffectiveness related to the hedging relationship in its entirety.
  4. 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.

*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.

CWAN Clearwater Analytics Holdings Inc. Class A Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba2B1
Income StatementBaa2Baa2
Balance SheetBa3C
Leverage RatiosCaa2Baa2
Cash FlowBaa2Caa2
Rates of Return and ProfitabilityB1B2

*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. Brailsford, T.J. R.W. Faff (1996), "An evaluation of volatility forecasting techniques," Journal of Banking Finance, 20, 419–438.
  2. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
  3. D. Bertsekas. Dynamic programming and optimal control. Athena Scientific, 1995.
  4. M. Benaim, J. Hofbauer, and S. Sorin. Stochastic approximations and differential inclusions, Part II: Appli- cations. Mathematics of Operations Research, 31(4):673–695, 2006
  5. Blei DM, Lafferty JD. 2009. Topic models. In Text Mining: Classification, Clustering, and Applications, ed. A Srivastava, M Sahami, pp. 101–24. Boca Raton, FL: CRC Press
  6. S. Devlin, L. Yliniemi, D. Kudenko, and K. Tumer. Potential-based difference rewards for multiagent reinforcement learning. In Proceedings of the Thirteenth International Joint Conference on Autonomous Agents and Multiagent Systems, May 2014
  7. J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
Frequently Asked QuestionsQ: Is CWAN stock expected to rise?
A: CWAN stock prediction model is evaluated with Ensemble Learning (ML) and Statistical Hypothesis Testing and it is concluded that dominant strategy for CWAN stock is Buy
Q: Is CWAN stock a buy or sell?
A: The dominant strategy among neural network is to Buy CWAN Stock.
Q: Is Clearwater Analytics Holdings Inc. Class A Common Stock stock a good investment?
A: The consensus rating for Clearwater Analytics Holdings Inc. Class A Common Stock is Buy and is assigned short-term Ba2 & long-term B1 estimated rating.
Q: What is the consensus rating of CWAN stock?
A: The consensus rating for CWAN is Buy.
Q: What is the forecast for CWAN stock?
A: CWAN target price forecast: Buy

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