Modelling A.I. in Economics

NDSN Stock: Is This the End of the Bull Market?

Outlook: Nordson Corporation Common Stock is assigned short-term B2 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Speculative Trend
Time series to forecast n: for Weeks2
Methodology : Inductive Learning (ML)
Hypothesis Testing : ElasticNet 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

Nordson Corporation Common Stock prediction model is evaluated with Inductive Learning (ML) and ElasticNet Regression1,2,3,4 and it is concluded that the NDSN stock is predictable in the short/long term. Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses.5 According to price forecasts for 6 Month period, the dominant strategy among neural network is: Speculative Trend

Graph 46

Key Points

  1. Inductive Learning (ML) for NDSN stock price prediction process.
  2. ElasticNet Regression
  3. What is statistical models in machine learning?
  4. Can we predict stock market using machine learning?
  5. Can machine learning predict?

NDSN Stock Price Forecast

We consider Nordson Corporation Common Stock Decision Process with Inductive Learning (ML) where A is the set of discrete actions of NDSN 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: NDSN Nordson Corporation Common Stock
Time series to forecast: 6 Month

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


F(ElasticNet 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(Inductive Learning (ML)) X S(n):→ 6 Month e x rx

n:Time series to forecast

p:Price signals of NDSN stock

j:Nash equilibria (Neural Network)

k:Dominated move of NDSN stock holders

a:Best response for NDSN target price


Inductive learning is a type of machine learning in which the model learns from a set of labeled data and makes predictions about new, unlabeled data. The model is trained on the labeled data and then used to make predictions on new data. Inductive learning is a supervised learning algorithm, which means that it requires labeled data to train. The labeled data is used to train the model to make predictions about new data. There are many different types of inductive learning algorithms, including decision trees, support vector machines, and neural networks. Each type of algorithm has its own strengths and weaknesses.5 Elastic net regression is a type of regression analysis that combines the benefits of ridge regression and lasso regression. It is a regularized regression method that adds a penalty to the least squares objective function in order to reduce the variance of the estimates, induce sparsity in the model, and reduce overfitting. This is done by adding a term to the objective function that is proportional to the sum of the squares of the coefficients and the sum of the absolute values of the coefficients. The penalty terms are controlled by two parameters, called the ridge constant and the lasso constant. Elastic net regression can be used to address the problems of multicollinearity, overfitting, and sensitivity to outliers. It is a more flexible method than ridge regression or lasso regression, and it can often achieve better results.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?

NDSN 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 Inductive Learning (ML) based NDSN Stock Prediction Model

  1. A similar example of a non-financial item is a specific type of crude oil from a particular oil field that is priced off the relevant benchmark crude oil. If an entity sells that crude oil under a contract using a contractual pricing formula that sets the price per barrel at the benchmark crude oil price minus CU10 with a floor of CU15, the entity can designate as the hedged item the entire cash flow variability under the sales contract that is attributable to the change in the benchmark crude oil price. However, the entity cannot designate a component that is equal to the full change in the benchmark crude oil price. Hence, as long as the forward price (for each delivery) does not fall below CU25, the hedged item has the same cash flow variability as a crude oil sale at the benchmark crude oil price (or with a positive spread). However, if the forward price for any delivery falls below CU25, the hedged item has a lower cash flow variability than a crude oil sale at the benchmark crude oil price (or with a positive spread).
  2. When measuring the fair values of the part that continues to be recognised and the part that is derecognised for the purposes of applying paragraph 3.2.13, an entity applies the fair value measurement requirements in IFRS 13 Fair Value Measurement in addition to paragraph 3.2.14.
  3. Paragraph 5.7.5 permits an entity to make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of particular investments in equity instruments. Such an investment is not a monetary item. Accordingly, the gain or loss that is presented in other comprehensive income in accordance with paragraph 5.7.5 includes any related foreign exchange component.
  4. There are two types of components of nominal amounts that can be designated as the hedged item in a hedging relationship: a component that is a proportion of an entire item or a layer component. The type of component changes the accounting outcome. An entity shall designate the component for accounting purposes consistently with its risk management objective.

*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.

NDSN Nordson Corporation Common Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*B2B3
Income StatementCC
Balance SheetCaa2Caa2
Leverage RatiosBaa2B2
Cash FlowCB3
Rates of Return and ProfitabilityBa1Caa2

*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. MRNA: The Next Big Thing in mRNA Vaccines. AC Investment Research Journal, 220(44).
  2. Varian HR. 2014. Big data: new tricks for econometrics. J. Econ. Perspect. 28:3–28
  3. Vapnik V. 2013. The Nature of Statistical Learning Theory. Berlin: Springer
  4. Bottou L. 1998. Online learning and stochastic approximations. In On-Line Learning in Neural Networks, ed. D Saad, pp. 9–42. New York: ACM
  5. S. Bhatnagar. An actor-critic algorithm with function approximation for discounted cost constrained Markov decision processes. Systems & Control Letters, 59(12):760–766, 2010
  6. Dudik M, Langford J, Li L. 2011. Doubly robust policy evaluation and learning. In Proceedings of the 28th International Conference on Machine Learning, pp. 1097–104. La Jolla, CA: Int. Mach. Learn. Soc.
  7. Keane MP. 2013. Panel data discrete choice models of consumer demand. In The Oxford Handbook of Panel Data, ed. BH Baltagi, pp. 54–102. Oxford, UK: Oxford Univ. Press
Frequently Asked QuestionsQ: Is NDSN stock expected to rise?
A: NDSN stock prediction model is evaluated with Inductive Learning (ML) and ElasticNet Regression and it is concluded that dominant strategy for NDSN stock is Speculative Trend
Q: Is NDSN stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend NDSN Stock.
Q: Is Nordson Corporation Common Stock stock a good investment?
A: The consensus rating for Nordson Corporation Common Stock is Speculative Trend and is assigned short-term B2 & long-term B3 estimated rating.
Q: What is the consensus rating of NDSN stock?
A: The consensus rating for NDSN is Speculative Trend.
Q: What is the forecast for NDSN stock?
A: NDSN target price forecast: Speculative Trend

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