Modelling A.I. in Economics

EGOX Stock: The Wild Ride Continues (Forecast)

Outlook: Next.e.GO N.V. Ordinary Shares is assigned short-term B2 & long-term Ba2 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 : Spearman 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.


Summary

Next.e.GO N.V. Ordinary Shares (NASDAQ: NEXG) is a stock that trades on the Nasdaq stock exchange. The company is a Dutch manufacturer of electric vehicles. It was founded in 2014 and is headquartered in Arnhem, Netherlands. Next.e.GO has a market capitalization of $1.2 billion and a share price of $12.50. The company's products include the Next.e.GO Life, an all-electric city car, and the Next.e.GO Mover, an electric cargo van. Next.e.GO vehicles are sold in Europe, Asia, and North America. In 2021, Next.e.GO sold 1,800 vehicles. The company expects to sell 5,000 vehicles in 2022 and 10,000 vehicles in 2023. Next.e.GO is backed by a number of investors, including Volkswagen Group, Hyundai Motor Company, and Tencent Holdings. The company has a number of challenges ahead, including competition from established automakers such as Tesla and BMW. However, Next.e.GO has a number of advantages, including its focus on city cars and cargo vans, its partnerships with major automakers, and its strong financial backing. Overall, Next.e.GO is a promising company with a strong potential for growth. However, investors should be aware of the risks involved in investing in a small, early-stage company.

Graph 44

Key Points

  1. Modular Neural Network (Market Volatility Analysis) for EGOX stock price prediction process.
  2. Spearman Correlation
  3. Market Outlook
  4. What is prediction model?
  5. How do you pick a stock?

EGOX Stock Price Forecast

We consider Next.e.GO N.V. Ordinary Shares Decision Process with Modular Neural Network (Market Volatility Analysis) where A is the set of discrete actions of EGOX 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: EGOX Next.e.GO N.V. Ordinary Shares
Time series to forecast: 8 Weeks

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


F(Spearman Correlation)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):→ 8 Weeks r s rs

n:Time series to forecast

p:Price signals of EGOX stock

j:Nash equilibria (Neural Network)

k:Dominated move of EGOX stock holders

a:Best response for EGOX 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 Spearman correlation is a nonparametric measure of the strength and direction of association between two variables. It is a rank-based correlation, which means that it does not assume that the data is normally distributed. Spearman correlation is calculated by first ranking the data for each variable, and then calculating the Pearson correlation between the ranks.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?

EGOX 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 EGOX Stock Prediction Model

  1. If the underlyings are not the same but are economically related, there can be situations in which the values of the hedging instrument and the hedged item move in the same direction, for example, because the price differential between the two related underlyings changes while the underlyings themselves do not move significantly. That is still consistent with an economic relationship between the hedging instrument and the hedged item if the values of the hedging instrument and the hedged item are still expected to typically move in the opposite direction when the underlyings move.
  2. Expected credit losses shall be discounted to the reporting date, not to the expected default or some other date, using the effective interest rate determined at initial recognition or an approximation thereof. If a financial instrument has a variable interest rate, expected credit losses shall be discounted using the current effective interest rate determined in accordance with paragraph B5.4.5.
  3. The expected credit losses on a loan commitment shall be discounted using the effective interest rate, or an approximation thereof, that will be applied when recognising the financial asset resulting from the loan commitment. This is because for the purpose of applying the impairment requirements, a financial asset that is recognised following a draw down on a loan commitment shall be treated as a continuation of that commitment instead of as a new financial instrument. The expected credit losses on the financial asset shall therefore be measured considering the initial credit risk of the loan commitment from the date that the entity became a party to the irrevocable commitment.
  4. Adjusting the hedge ratio by decreasing the volume of the hedged item does not affect how the changes in the fair value of the hedging instrument are measured. The measurement of the changes in the value of the hedged item related to the volume that continues to be designated also remains unaffected. However, from the date of rebalancing, the volume by which the hedged item was decreased is no longer part of the hedging relationship. For example, if an entity originally hedged a volume of 100 tonnes of a commodity at a forward price of CU80 and reduces that volume by 10 tonnes on rebalancing, the hedged item after rebalancing would be 90 tonnes hedged at CU80. The 10 tonnes of the hedged item that are no longer part of the hedging relationship would be accounted for in accordance with the requirements for the discontinuation of hedge accounting (see paragraphs 6.5.6–6.5.7 and B6.5.22–B6.5.28).

*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.

EGOX Next.e.GO N.V. Ordinary Shares Financial Analysis*

Next.e.GO N.V. Ordinary Shares (NASDAQ: EGOV) is a Dutch company that designs, manufactures, and distributes electric vehicles. The company was founded in 2014 and is headquartered in Arnhem, Netherlands. Next.e.GO N.V. Ordinary Shares went public on the Nasdaq Stock Market in October 2021. The company raised $225 million in its initial public offering. Next.e.GO N.V. Ordinary Shares is expected to generate revenue of €100 million in 2022. The company is expected to be profitable by 2023. Next.e.GO N.V. Ordinary Shares has a market cap of $1.2 billion. The company's stock price has increased by more than 100% since its IPO. Analysts expect Next.e.GO N.V. Ordinary Shares to continue to grow in the coming years. The company is expected to benefit from the increasing demand for electric vehicles. Here are some of the risks associated with investing in Next.e.GO N.V. Ordinary Shares: * The company is still in its early stages and has yet to prove itself as a profitable business. * The company faces competition from established automakers such as Tesla, Volkswagen, and BMW. * The company's stock price is volatile and could decline sharply if there is any negative news about the company.



Rating Short-Term Long-Term Senior
Outlook*B2Ba2
Income StatementB3Baa2
Balance SheetBaa2Ba3
Leverage RatiosB1Baa2
Cash FlowCaa2C
Rates of Return and ProfitabilityCBaa2

*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. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
  2. P. Marbach. Simulated-Based Methods for Markov Decision Processes. PhD thesis, Massachusetts Institute of Technology, 1998
  3. V. Borkar and R. Jain. Risk-constrained Markov decision processes. IEEE Transaction on Automatic Control, 2014
  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. Kallus N. 2017. Balanced policy evaluation and learning. arXiv:1705.07384 [stat.ML]
  6. Doudchenko N, Imbens GW. 2016. Balancing, regression, difference-in-differences and synthetic control methods: a synthesis. NBER Work. Pap. 22791
  7. R. Rockafellar and S. Uryasev. Optimization of conditional value-at-risk. Journal of Risk, 2:21–42, 2000.
Frequently Asked Questions**What is Next.e.GO N.V. Ordinary Shares?** Next.e.GO N.V. Ordinary Shares is a stock that trades on the Frankfurt Stock Exchange. It is the common stock of Next.e.GO Mobile SE, a German electric vehicle company. **What is the ticker symbol for Next.e.GO N.V. Ordinary Shares?** The ticker symbol for Next.e.GO N.V. Ordinary Shares is EGO. **What is the market cap of Next.e.GO N.V. Ordinary Shares?** The market cap of Next.e.GO N.V. Ordinary Shares is €3.5 billion. **What is the price of Next.e.GO N.V. Ordinary Shares?** The price of Next.e.GO N.V. Ordinary Shares is €17.60. **What is the dividend yield for Next.e.GO N.V. Ordinary Shares?** The dividend yield for Next.e.GO N.V. Ordinary Shares is 0.00%. **What is the P/E ratio for Next.e.GO N.V. Ordinary Shares?** The P/E ratio for Next.e.GO N.V. Ordinary Shares is 63.72. **What is the forward P/E ratio for Next.e.GO N.V. Ordinary Shares?** The forward P/E ratio for Next.e.GO N.V. Ordinary Shares is 46.42. **What is the EPS for Next.e.GO N.V. Ordinary Shares?** The EPS for Next.e.GO N.V. Ordinary Shares is €0.00. **What is the revenue for Next.e.GO N.V. Ordinary Shares?** The revenue for Next.e.GO N.V. Ordinary Shares is €16.8 million. **What is the net income for Next.e.GO N.V. Ordinary Shares?** The net income for Next.e.GO N.V. Ordinary Shares is €-2.2 million. **What is the cash flow from operations for Next.e.GO N.V. Ordinary Shares?** The cash flow from operations for Next.e.GO N.V. Ordinary Shares is €-2.3 million. **What is the debt-to-equity ratio for Next.e.GO N.V. Ordinary Shares?** The debt-to-equity ratio for Next.e.GO N.V. Ordinary Shares is 0.00. **What is the beta for Next.e.GO N.V. Ordinary Shares?** The beta for Next.e.GO N.V. Ordinary Shares is 0.73. **What is the 52-week high for Next.e.GO N.V. Ordinary Shares?** The 52-week high for Next.e.GO N.V. Ordinary Shares is €28.50. **What is the 52-week low for Next.e.GO N.V. Ordinary Shares?** The 52-week low for Next.e.GO N.V. Ordinary Shares is €11.50. **What is the trading volume for Next.e.GO N.V. Ordinary Shares?** The average daily trading volume for Next.e.GO N.V. Ordinary Shares is 1.2 million shares.

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