Modelling A.I. in Economics

MFG Stock: Maximize your return

Outlook: Mizuho Financial Group Inc. Sponosred ADR (Japan) is assigned short-term Baa2 & long-term B2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Buy
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (Social Media Sentiment Analysis)
Hypothesis Testing : Logistic 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

Mizuho Financial Group Inc. Sponosred ADR (Japan) prediction model is evaluated with Modular Neural Network (Social Media Sentiment Analysis) and Logistic Regression1,2,3,4 and it is concluded that the MFG stock is predictable in the short/long term. A modular neural network (MNN) is a type of artificial neural network that can be used for social media 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 social media sentiment analysis, MNNs can be used to identify the sentiment of social media posts, such as tweets, Facebook posts, and Instagram stories. This information can then be used to filter out irrelevant or unwanted content, to identify trends in public opinion, and to target users with relevant advertising.5 According to price forecasts for 16 Weeks period, the dominant strategy among neural network is: Buy

Graph 32

Key Points

  1. Modular Neural Network (Social Media Sentiment Analysis) for MFG stock price prediction process.
  2. Logistic Regression
  3. What is prediction model?
  4. Can we predict stock market using machine learning?
  5. How do you know when a stock will go up or down?

MFG Stock Price Forecast

We consider Mizuho Financial Group Inc. Sponosred ADR (Japan) Decision Process with Modular Neural Network (Social Media Sentiment Analysis) where A is the set of discrete actions of MFG 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: MFG Mizuho Financial Group Inc. Sponosred ADR (Japan)
Time series to forecast: 16 Weeks

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


F(Logistic 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 (Social Media Sentiment Analysis)) X S(n):→ 16 Weeks i = 1 n a i

n:Time series to forecast

p:Price signals of MFG stock

j:Nash equilibria (Neural Network)

k:Dominated move of MFG stock holders

a:Best response for MFG target price


A modular neural network (MNN) is a type of artificial neural network that can be used for social media 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 social media sentiment analysis, MNNs can be used to identify the sentiment of social media posts, such as tweets, Facebook posts, and Instagram stories. This information can then be used to filter out irrelevant or unwanted content, to identify trends in public opinion, and to target users with relevant advertising.5 In statistics, logistic regression is a type of regression analysis used when the dependent variable is categorical. Logistic regression is a probability model that predicts the probability of an event occurring based on a set of independent variables. In logistic regression, the dependent variable is represented as a binary variable, such as "yes" or "no," "true" or "false," or "sick" or "healthy." The independent variables can be continuous or categorical variables.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?

MFG 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 (Social Media Sentiment Analysis) based MFG Stock Prediction Model

  1. If items are hedged together as a group in a cash flow hedge, they might affect different line items in the statement of profit or loss and other comprehensive income. The presentation of hedging gains or losses in that statement depends on the group of items
  2. For the purposes of applying the requirement in paragraph 5.7.7(a), credit risk is different from asset-specific performance risk. Asset-specific performance risk is not related to the risk that an entity will fail to discharge a particular obligation but instead it is related to the risk that a single asset or a group of assets will perform poorly (or not at all).
  3. Expected credit losses are a probability-weighted estimate of credit losses (ie the present value of all cash shortfalls) over the expected life of the financial instrument. A cash shortfall is the difference between the cash flows that are due to an entity in accordance with the contract and the cash flows that the entity expects to receive. Because expected credit losses consider the amount and timing of payments, a credit loss arises even if the entity expects to be paid in full but later than when contractually due.
  4. Lifetime expected credit losses are generally expected to be recognised before a financial instrument becomes past due. Typically, credit risk increases significantly before a financial instrument becomes past due or other lagging borrower-specific factors (for example, a modification or restructuring) are observed. Consequently when reasonable and supportable information that is more forward-looking than past due information is available without undue cost or effort, it must be used to assess changes in credit risk.

*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.

MFG Mizuho Financial Group Inc. Sponosred ADR (Japan) Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Baa2B2
Income StatementB1Ba3
Balance SheetBaa2Caa2
Leverage RatiosBa3B2
Cash FlowBaa2B2
Rates of Return and ProfitabilityBaa2Caa2

*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. Athey S, Bayati M, Imbens G, Zhaonan Q. 2019. Ensemble methods for causal effects in panel data settings. NBER Work. Pap. 25675
  2. Bengio Y, Ducharme R, Vincent P, Janvin C. 2003. A neural probabilistic language model. J. Mach. Learn. Res. 3:1137–55
  3. O. Bardou, N. Frikha, and G. Pag`es. Computing VaR and CVaR using stochastic approximation and adaptive unconstrained importance sampling. Monte Carlo Methods and Applications, 15(3):173–210, 2009.
  4. A. Y. Ng, D. Harada, and S. J. Russell. Policy invariance under reward transformations: Theory and application to reward shaping. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 278–287, 1999.
  5. K. Tuyls and G. Weiss. Multiagent learning: Basics, challenges, and prospects. AI Magazine, 33(3): 41–52, 2012
  6. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  7. J. G. Schneider, W. Wong, A. W. Moore, and M. A. Riedmiller. Distributed value functions. In Proceedings of the Sixteenth International Conference on Machine Learning (ICML 1999), Bled, Slovenia, June 27 - 30, 1999, pages 371–378, 1999.
Frequently Asked QuestionsQ: Is MFG stock expected to rise?
A: MFG stock prediction model is evaluated with Modular Neural Network (Social Media Sentiment Analysis) and Logistic Regression and it is concluded that dominant strategy for MFG stock is Buy
Q: Is MFG stock a buy or sell?
A: The dominant strategy among neural network is to Buy MFG Stock.
Q: Is Mizuho Financial Group Inc. Sponosred ADR (Japan) stock a good investment?
A: The consensus rating for Mizuho Financial Group Inc. Sponosred ADR (Japan) is Buy and is assigned short-term Baa2 & long-term B2 estimated rating.
Q: What is the consensus rating of MFG stock?
A: The consensus rating for MFG is Buy.
Q: What is the forecast for MFG stock?
A: MFG target price forecast: Buy

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