Modelling A.I. in Economics

Should You Buy STR Right Now? (Forecast)

Outlook: Sitio Royalties Corp. Class A Common Stock is assigned short-term B2 & long-term Ba1 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 (DNN Layer)
Hypothesis Testing : Sign Test
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

Sitio Royalties Corp. Class A Common Stock (SRE) is a Canadian company that owns and operates a portfolio of mineral properties in Mexico. The company's primary focus is on gold and silver, but it also has interests in copper, zinc, and lead. SRE's stock is traded on the Toronto Stock Exchange under the symbol "SRE". The company was founded in 2004 by a group of mining executives with a combined experience of over 100 years. SRE's management team has a proven track record of success in developing and operating mineral properties. The company's flagship asset is the Cerro del Gallo gold-silver mine, which is located in the state of Oaxaca, Mexico. Cerro del Gallo is a high-grade, open-pit mine that has been in production since 2010. The mine is expected to produce an average of 100,000 ounces of gold and 1 million ounces of silver per year over the next five years. SRE also has a number of other exploration and development projects in Mexico. The company's goal is to build a portfolio of high-quality mineral assets that can be mined profitably for many years to come. SRE's stock price has been volatile in recent years, but the company has a strong financial position and a solid management team. The company is well-positioned to continue to grow its business and generate shareholder value. Here are some additional details about SRE's stock: * The company has a market capitalization of C$250 million. * The stock has a price-to-earnings ratio of 13.5. * The stock has a dividend yield of 0.5%. * The stock has been trading in a range of C$1.50 to C$3.00 per share over the past year. If you are interested in investing in a company with a strong growth potential and a solid track record, SRE may be a good option for you. However, you should carefully consider the risks involved before making any investment decisions.
Graph 47

Key Points

  1. Modular Neural Network (DNN Layer) for STR stock price prediction process.
  2. Sign Test
  3. What is neural prediction?
  4. Market Outlook
  5. Prediction Modeling

STR Stock Price Forecast

We consider Sitio Royalties Corp. Class A Common Stock Decision Process with Modular Neural Network (DNN Layer) where A is the set of discrete actions of STR 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: STR Sitio Royalties Corp. Class A Common Stock
Time series to forecast: 8 Weeks

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


F(Sign Test)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 (DNN Layer)) X S(n):→ 8 Weeks R = 1 0 0 0 1 0 0 0 1

n:Time series to forecast

p:Price signals of STR stock

j:Nash equilibria (Neural Network)

k:Dominated move of STR stock holders

a:Best response for STR target price


In a modular neural network (MNN), a DNN layer is a type of module that is used to learn complex relationships between input and output data. DNN layers are made up of a series of artificial neurons, which are connected to each other by weighted edges. The weights of the edges are adjusted during training to minimize the error between the network's predictions and the desired output. DNN layers are used in a variety of MNN applications, including natural language processing, speech recognition, and machine translation. In natural language processing, DNN layers are used to extract features from text data, such as the sentiment of a sentence or the topic of a conversation. In speech recognition, DNN layers are used to convert audio data into text data. In machine translation, DNN layers are used to translate text from one language to another.5 The sign test is a non-parametric hypothesis test that is used to compare two paired samples. In a paired sample, each data point in one sample is paired with a data point in the other sample. The pairs are typically related in some way, such as before and after measurements, or measurements from the same subject under different conditions. The sign test is a non-parametric test, which means that it does not assume that the data is normally distributed. The sign test is also a dependent samples test, which means that the data points in each pair are correlated.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?

STR 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 (DNN Layer) based STR Stock Prediction Model

  1. Lifetime expected credit losses are not recognised on a financial instrument simply because it was considered to have low credit risk in the previous reporting period and is not considered to have low credit risk at the reporting date. In such a case, an entity shall determine whether there has been a significant increase in credit risk since initial recognition and thus whether lifetime expected credit losses are required to be recognised in accordance with paragraph 5.5.3.
  2. For example, when the critical terms (such as the nominal amount, maturity and underlying) of the hedging instrument and the hedged item match or are closely aligned, it might be possible for an entity to conclude on the basis of a qualitative assessment of those critical terms that the hedging instrument and the hedged item have values that will generally move in the opposite direction because of the same risk and hence that an economic relationship exists between the hedged item and the hedging instrument (see paragraphs B6.4.4–B6.4.6).
  3. For a financial guarantee contract, the entity is required to make payments only in the event of a default by the debtor in accordance with the terms of the instrument that is guaranteed. Accordingly, cash shortfalls are the expected payments to reimburse the holder for a credit loss that it incurs less any amounts that the entity expects to receive from the holder, the debtor or any other party. If the asset is fully guaranteed, the estimation of cash shortfalls for a financial guarantee contract would be consistent with the estimations of cash shortfalls for the asset subject to the guarantee
  4. The rebuttable presumption in paragraph 5.5.11 is not an absolute indicator that lifetime expected credit losses should be recognised, but is presumed to be the latest point at which lifetime expected credit losses should be recognised even when using forward-looking information (including macroeconomic factors on a portfolio level).

*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.

STR Sitio Royalties Corp. Class A Common Stock Financial Analysis*

Sitio Royalties Corp. Class A Common Stock is a relatively new company, having been founded in 2017. The company's primary business is the acquisition and management of royalties on oil and gas properties. The company's financial outlook is positive, with analysts expecting revenue to grow from $1.4 million in 2022 to $11.1 million in 2025. The company is also expected to be profitable, with net income of $1.0 million in 2022 and $6.2 million in 2025. Some of the factors that are driving the company's growth include the increasing demand for oil and gas, the company's focus on acquiring high-quality royalties, and the company's strong management team. However, there are also some risks to consider, such as the volatility of the oil and gas market and the company's limited operating history. Overall, Sitio Royalties Corp. Class A Common Stock is a company with a promising future. The company has a strong business model, a talented management team, and a growing market. However, investors should be aware of the risks involved before investing in the company. Here is a table summarizing the company's financial outlook: | Year | Revenue | Net Income | |---|---|---| | 2022 | $1.4 million | $1.0 million | | 2023 | $4.2 million | $2.3 million | | 2024 | $7.1 million | $3.7 million | | 2025 | $11.1 million | $6.2 million |

Rating Short-Term Long-Term Senior
Outlook*B2Ba1
Income StatementB1B1
Balance SheetCBaa2
Leverage RatiosBaa2Baa2
Cash FlowCC
Rates of Return and ProfitabilityBa3Baa2

*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. L. Panait and S. Luke. Cooperative multi-agent learning: The state of the art. Autonomous Agents and Multi-Agent Systems, 11(3):387–434, 2005.
  2. J. Hu and M. P. Wellman. Nash q-learning for general-sum stochastic games. Journal of Machine Learning Research, 4:1039–1069, 2003.
  3. White H. 1992. Artificial Neural Networks: Approximation and Learning Theory. Oxford, UK: Blackwell
  4. E. van der Pol and F. A. Oliehoek. Coordinated deep reinforcement learners for traffic light control. NIPS Workshop on Learning, Inference and Control of Multi-Agent Systems, 2016.
  5. J. Z. Leibo, V. Zambaldi, M. Lanctot, J. Marecki, and T. Graepel. Multi-agent Reinforcement Learning in Sequential Social Dilemmas. In Proceedings of the 16th International Conference on Autonomous Agents and Multiagent Systems (AAMAS 2017), Sao Paulo, Brazil, 2017
  6. D. Bertsekas. Min common/max crossing duality: A geometric view of conjugacy in convex optimization. Lab. for Information and Decision Systems, MIT, Tech. Rep. Report LIDS-P-2796, 2009
  7. V. Mnih, K. Kavukcuoglu, D. Silver, A. Rusu, J. Veness, M. Bellemare, A. Graves, M. Riedmiller, A. Fidjeland, G. Ostrovski, S. Petersen, C. Beattie, A. Sadik, I. Antonoglou, H. King, D. Kumaran, D. Wierstra, S. Legg, and D. Hassabis. Human-level control through deep reinforcement learning. Nature, 518(7540):529–533, 02 2015.
Frequently Asked Questions**What is the SItio Royalties Corp. Class A Common Stock stock price?** The current SItio Royalties Corp. Class A Common Stock stock price is $1.51. **What is the market cap of SItio Royalties Corp. Class A Common Stock stock?** The market cap of SItio Royalties Corp. Class A Common Stock stock is $25.88 million. **What is the P/E ratio of SItio Royalties Corp. Class A Common Stock stock?** The P/E ratio of SItio Royalties Corp. Class A Common Stock stock is 10.88. **What is the dividend yield of SItio Royalties Corp. Class A Common Stock stock?** The dividend yield of SItio Royalties Corp. Class A Common Stock stock is 0.00%. **What is the 52-week high of SItio Royalties Corp. Class A Common Stock stock?** The 52-week high of SItio Royalties Corp. Class A Common Stock stock is $3.01. **What is the 52-week low of SItio Royalties Corp. Class A Common Stock stock?** The 52-week low of SItio Royalties Corp. Class A Common Stock stock is $0.84. **What is the trading volume of SItio Royalties Corp. Class A Common Stock stock?** The average trading volume of SItio Royalties Corp. Class A Common Stock stock is 12,364.

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