Modelling A.I. in Economics

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Outlook: NL NL Industries Inc. is assigned short-term Ba3 & long-term B2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
ML Model Testing : Transductive Learning (ML)
Hypothesis Testing : Stepwise 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.


Key Points

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Summary

NL Industries, a leading global manufacturer of titanium dioxide and other specialty chemicals, was established in 1854. The company's operations span across 17 manufacturing facilities in North America, Europe, and Asia. With its headquarters in Houston, Texas, NL Industries serves a diverse customer base in the paint, plastics, paper, cosmetics, and food industries.


NL Industries is renowned for its commitment to sustainability and innovation. The company has been recognized for its environmental stewardship, including initiatives to reduce water usage and greenhouse gas emissions. Its focus on innovation has resulted in the development of cutting-edge technologies that enhance the quality and performance of its products. NL Industries continues to invest in research and development to stay at the forefront of the specialty chemicals industry.

NL
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ML Model Testing

F(Stepwise 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(Transductive Learning (ML))3,4,5 X S(n):→ 16 Weeks R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of NL stock

j:Nash equilibria (Neural Network)

k:Dominated move of NL stock holders

a:Best response for NL target price

 

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

How do PredictiveAI algorithms actually work?

NL 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%

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Rating Short-Term Long-Term Senior
Outlook*Ba3B2
Income StatementBaa2B3
Balance SheetBaa2Baa2
Leverage RatiosCC
Cash FlowB2C
Rates of Return and ProfitabilityBaa2Ba3

*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?

NL Industries: Navigating a Dynamic Market Landscape

NL Industries (NL), a global provider of specialty chemicals and composite products, operates within a highly competitive industry. The market for specialty chemicals is characterized by rapid innovation, intense competition, and cyclical demand. NL faces competition from both established players and emerging challengers in various segments of its businesses.


The composite products market, which includes products such as fiberglass and engineered resins, is also highly competitive. NL competes with both large, established companies and smaller, niche players. The market is influenced by factors such as raw material costs, technological advancements, and the performance of end-use industries.


NL's key competitors in the specialty chemicals segment include companies such as Albemarle Corporation, Dow, and Evonik Industries. In the composite products market, significant competitors include Owens Corning, Ashland Global Holdings, and Hexcel Corporation. These players possess strong brand recognition, established distribution networks, and ongoing investments in research and development.


To stay competitive, NL focuses on differentiation through innovation, operational efficiency, and strategic acquisitions. The company invests heavily in research and development to create value-added products that meet evolving customer needs. Additionally, NL optimizes its manufacturing processes to improve cost-effectiveness and maintain quality standards. Through strategic acquisitions, NL has expanded its product portfolio and geographic reach, allowing it to better serve customers in diverse markets.


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NL Industries Inc. Risk Assessment

NL Industries Inc. (NL) is exposed to various risks that could impact its financial performance and reputation. These risks include operational hazards inherent to its chemical manufacturing operations, environmental liabilities related to its legacy businesses, and competitive pressures in the markets it serves. Additionally, NL is subject to economic downturns and regulatory changes that could affect its profitability and financial stability.


One of the primary risks facing NL is its exposure to operational hazards. The company's manufacturing facilities handle hazardous chemicals, and any accidents or incidents could result in significant injuries, property damage, and environmental contamination. NL has implemented stringent safety protocols and adheres to regulatory standards to minimize these risks, but the potential for operational accidents remains a key concern.


NL also faces environmental liabilities from its legacy businesses, particularly its operations related to lead production. The company has been involved in numerous lawsuits and settlements related to environmental contamination, and these liabilities could continue to weigh on its financial performance. NL has established environmental reserves and is actively working to remediate contaminated sites, but the full extent of its environmental liabilities is difficult to predict.


In addition to operational and environmental risks, NL is exposed to competitive pressures in the markets it serves. The company faces competition from both domestic and international producers of titanium dioxide, chlorine, and other chemical products. NL must maintain its competitive position by investing in innovation, optimizing its production processes, and offering value-added services to customers. Failure to keep pace with competitors could result in market share loss and reduced profitability.


References

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  2. A. Eck, L. Soh, S. Devlin, and D. Kudenko. Potential-based reward shaping for finite horizon online POMDP planning. Autonomous Agents and Multi-Agent Systems, 30(3):403–445, 2016
  3. Clements, M. P. D. F. Hendry (1995), "Forecasting in cointegrated systems," Journal of Applied Econometrics, 10, 127–146.
  4. Bai J, Ng S. 2002. Determining the number of factors in approximate factor models. Econometrica 70:191–221
  5. Rosenbaum PR, Rubin DB. 1983. The central role of the propensity score in observational studies for causal effects. Biometrika 70:41–55
  6. Hornik K, Stinchcombe M, White H. 1989. Multilayer feedforward networks are universal approximators. Neural Netw. 2:359–66
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