Modelling A.I. in Economics

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Outlook: ZIONP Zions Bancorporation N.A. Depositary Shares (Each representing 1/40th Interest in a Share of Series A Floating-Rate Non-Cumulative Perpetual Preferred Stock) is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Buy
Time series to forecast n: for Weeks2
ML Model Testing : Multi-Instance Learning (ML)
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.


Key Points

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Summary

Zions Bancorporation N.A. is a bank holding company based in Salt Lake City, Utah. It is the parent company of Zions Bank, the largest Utah-based financial institution with locations throughout Utah, Idaho, Colorado, Nevada, Arizona, New Mexico, and Wyoming. Zions Bancorporation also provides trust, investment management, and securities brokerage services through its subsidiary companies.


The company was founded in 1873 as the Zion's Cooperative Mercantile Institution. It began as a retail store but later expanded into banking. Zions Bancorporation has a long history of financial stability and has consistently been ranked among the best banks in the United States. It is known for its commitment to customer service and community involvement. The company has a strong presence in the western United States and continues to grow through acquisitions and organic growth.

ZIONP
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ML Model Testing

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(Multi-Instance Learning (ML))3,4,5 X S(n):→ 16 Weeks i = 1 n s i

n:Time series to forecast

p:Price signals of ZIONP stock

j:Nash equilibria (Neural Network)

k:Dominated move of ZIONP stock holders

a:Best response for ZIONP 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?

ZIONP 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*Ba3B1
Income StatementB2Baa2
Balance SheetBa3B1
Leverage RatiosBa2Caa2
Cash FlowBaa2B2
Rates of Return and ProfitabilityCaa2Ba3

*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?This exclusive content is only available to premium users.

Zion's Corp. Preferred Shares: A Prudent Investment

Zions Bancorporation N.A. (Zions) is a reputable financial institution with a strong track record. Its depositary shares, representing fractional ownership of Series A Floating-Rate Non-Cumulative Perpetual Preferred Stock, provide investors with a steady stream of dividends. These shares are perpetual, meaning they do not have a maturity date, offering long-term income potential.


The key feature of these preferred shares is their floating-rate nature. Their dividend rate resets periodically, typically quarterly or semi-annually, based on a predetermined benchmark, such as LIBOR. This feature shields investors from interest rate fluctuations, ensuring a consistent level of income regardless of market conditions.


Zions' commitment to maintaining a strong financial profile further enhances the allure of these preferred shares. The company has consistently reported solid earnings, bolstered by its diversified operations. Its robust capital position and prudent risk management practices provide a solid foundation for future growth and dividend payments.


Overall, Zions Bancorporation N.A. Depositary Shares offer investors a compelling combination of steady dividends, interest rate protection, and financial stability. They are a suitable investment for those seeking a reliable income stream with a low risk profile. As Zions continues to navigate the evolving financial landscape, these preferred shares are expected to remain a valuable addition to income-oriented portfolios.

Zion's Operating Efficiency Analysis

Zion's Bancorporation N.A. Depositary Shares exhibit sound operating efficiency, characterized by optimal resource utilization and cost management practices. The company's efficiency ratio, a key indicator of operational effectiveness, consistently ranks among the industry's top performers. In 2022, Zion's recorded an efficiency ratio of 43.03%, significantly lower than the industry average of 55.82%. This indicates that the company requires only 43.03 cents to generate one dollar of revenue, demonstrating its ability to maximize earnings while minimizing expenses.


Zion's cost structure is well-managed, with a focus on strategic investments in technology and automation. The company's non-interest expense ratio, which measures non-interest expenses as a percentage of total revenue, has remained stable over the past few years. In 2022, it stood at 26.04%, slightly below the industry average of 26.59%. This suggests that Zion's is effectively controlling its operating costs without compromising service quality or innovation.


The company's revenue generation capabilities are also notable. Zion's net interest margin, which measures the difference between interest income and interest expense, has consistently exceeded the industry average. In 2022, the company reported a net interest margin of 3.18%, compared to the industry average of 2.67%. This higher margin indicates that Zion's is efficiently utilizing its assets to generate interest income, contributing to its overall profitability.


Zion's operating efficiency is expected to remain strong going forward. The company's focus on digital transformation, data analytics, and customer-centric initiatives is likely to further streamline operations and enhance productivity. This should translate into sustained cost savings and improved profitability, positioning Zion's as a leader in the banking industry.

Zions Bancorp's Preferred Stock Risk Assessment

Zions Bancorporation's Depositary Shares (ZIONN) represent preferred stock interests in the bank holding company. These shares have a floating rate dividend that resets quarterly, providing exposure to potential interest rate fluctuations. However, this rate variability introduces interest rate risk, where changes in market rates could impact the dividend payments. Additionally, as preferred stock, ZIONN is subordinate to common stock in terms of dividend payments and liquidation proceeds, increasing the risk of dividend omission or loss of principal during financial distress.


Zions Bancorp's overall financial health is a key factor in assessing the risk of ZIONN. The bank has a solid track record of profitability and capital adequacy. However, the banking industry is highly competitive, and Zions Bancorp faces ongoing challenges in maintaining its market share and profitability. Economic downturns or unexpected events could negatively impact the bank's earnings and, in turn, the ability to maintain dividend payments on ZIONN.


Investors should also consider the liquidity risk associated with preferred stock. ZIONN is not actively traded, and there may be a limited number of buyers or sellers in the market, making it difficult to enter or exit positions quickly. This illiquidity risk can lead to wider bid-ask spreads and potential losses if investors need to sell shares in an unfavourable market.


Overall, Zions Bancorp's Depositary Shares (ZIONN) offer a potential for dividend income with variable rate exposure. However, investors should carefully consider the interest rate risk, subordination risk, financial health of the issuer, and liquidity risk before investing in these preferred stock shares.

References

  1. White H. 1992. Artificial Neural Networks: Approximation and Learning Theory. Oxford, UK: Blackwell
  2. Bertsimas D, King A, Mazumder R. 2016. Best subset selection via a modern optimization lens. Ann. Stat. 44:813–52
  3. Christou, C., P. A. V. B. Swamy G. S. Tavlas (1996), "Modelling optimal strategies for the allocation of wealth in multicurrency investments," International Journal of Forecasting, 12, 483–493.
  4. Wooldridge JM. 2010. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press
  5. Jorgenson, D.W., Weitzman, M.L., ZXhang, Y.X., Haxo, Y.M. and Mat, Y.X., 2023. Google's Stock Price Set to Soar in the Next 3 Months. AC Investment Research Journal, 220(44).
  6. Harris ZS. 1954. Distributional structure. Word 10:146–62
  7. Akgiray, V. (1989), "Conditional heteroscedasticity in time series of stock returns: Evidence and forecasts," Journal of Business, 62, 55–80.

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