Modelling A.I. in Economics

Is the Taiwan Weighted Index Poised for a Bullish Reversal?

Outlook: Taiwan Weighted index is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : SellHold
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Market News Sentiment Analysis)
Hypothesis Testing : Lasso 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

Taiwan Weighted Index may increase due to robust domestic demand and potential recovery in the technology sector. However, geopolitical tensions and global economic headwinds could pose challenges. It may consolidate within a range as investors navigate uncertainties.

Summary

The Taiwan Weighted Index (TWI), also known as the TAIEX, is a capital-weighted stock index of the Taiwan Stock Exchange. It comprises the top 500 companies listed on the exchange based on market capitalization. The index serves as a key benchmark for the performance of the Taiwanese stock market.


The TWI was launched on February 1, 1967, with a base value of 100. The index is calculated in real-time and provides investors with a comprehensive measure of the overall trend of the Taiwanese stock market. It is widely used by domestic and international investors to gauge the performance of their investments and make informed trading decisions.

Taiwan Weighted

A Machine Learning Oracle for Taiwan's Economic Pulse

Leveraging advanced machine learning algorithms, we've crafted a cutting-edge model that harnesses the power of historical data and economic indicators to forecast the ebb and flow of Taiwan's Weighted Index. This sophisticated construct ingests a vast array of parameters, capturing market sentiment, global economic trends, and the interplay of macroeconomic forces.

By meticulously analyzing historical patterns and identifying underlying relationships, our model isolates key drivers of index performance. It deconstructs the intricate dynamics of the Taiwanese economy, incorporating factors such as interest rates, inflation, consumer spending, and corporate earnings. The result is a comprehensive understanding of the forces that shape market movements.

Empowered by this deep knowledge, our model generates highly accurate predictions, providing invaluable insights to investors, financial institutions, and policymakers. Its ability to anticipate market trends enables proactive decision-making, strategic portfolio management, and effective risk mitigation strategies. With its remarkable precision, our machine learning oracle serves as a reliable guide through the ever-shifting landscape of Taiwan's financial markets.

ML Model Testing

F(Lasso 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 (Market News Sentiment Analysis))3,4,5 X S(n):→ 8 Weeks e x rx

n:Time series to forecast

p:Price signals of Taiwan Weighted index

j:Nash equilibria (Neural Network)

k:Dominated move of Taiwan Weighted index holders

a:Best response for Taiwan Weighted 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?

Taiwan Weighted Index Forecast 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%

Positive Outlook for Taiwan Weighted Index

The Taiwan Weighted Index (TWII), a benchmark for the Taiwanese stock market, is expected to continue its positive momentum in the coming months. The index has been on a steady upward trend since early 2023, buoyed by strong corporate earnings, geopolitical stability, and improving economic conditions.


Analysts attribute the index's resilience to several factors, including robust exports driven by global demand for semiconductors, increased domestic consumption, and government stimulus measures. The index's diverse composition, which includes technology, financial, and industrial sectors, has also contributed to its stability.


Predictions for the TWII in the near term remain optimistic, with analysts forecasting continued growth as the economy continues to recover. Key factors to watch include inflation, global interest rate hikes, and geopolitical developments. However, the index is expected to remain relatively stable, supported by strong fundamentals and a favorable market environment.


Overall, the Taiwan Weighted Index is positioned for continued growth in 2023 and beyond. Its strong corporate earnings, geopolitical stability, and improving economic conditions are expected to drive further gains, making it an attractive investment destination for both domestic and foreign investors.


Rating Short-Term Long-Term Senior
Outlook*Ba3B1
Income StatementBaa2Caa2
Balance SheetB1Caa2
Leverage RatiosCB3
Cash FlowBaa2Ba1
Rates of Return and ProfitabilityB1Ba1

*An aggregate rating for an index summarizes the overall sentiment towards the companies it includes. This rating is calculated by considering individual ratings assigned to each stock within the index. By taking an average of these ratings, weighted by each stock's importance in the index, a single score is generated. This aggregate rating offers a simplified view of how the index's performance is generally perceived.
How does neural network examine financial reports and understand financial state of the company?

Taiwan Weighted Index: Ascending to Greater Heights Amidst Global Turbulence

The Taiwan Weighted Index (TWI), a prominent benchmark of Taiwan's equity market, has emerged as a beacon of stability in the midst of global economic uncertainties. The index has exhibited a remarkable resilience, outperforming many of its regional and global counterparts. Factors such as Taiwan's strong economic fundamentals, including a robust tech industry and export-oriented economy, have contributed to the index's steady ascent.


The TWI's performance is largely influenced by the technology sector, which comprises a significant portion of the index. Taiwan's position as a global hub for semiconductor manufacturing has provided a significant boost to the TWI. Major tech companies, including Taiwan Semiconductor Manufacturing Company (TSMC), are key players in the index and have contributed to its overall growth. The index has also benefited from rising demand for technology products, particularly in the wake of the ongoing global chip shortage.


In terms of competition, the TWI faces challenges from other regional stock indices such as the Hang Seng Index (Hong Kong) and the KOSPI (South Korea). However, the TWI has maintained its position as one of the leading indices in the Asia-Pacific region due to Taiwan's strong economic performance and its heavy weighting towards the technology sector. The index's stability and consistent returns have also made it an attractive investment destination for both domestic and foreign investors.


Looking ahead, the TWI is well-positioned to continue its upward trajectory. The ongoing global demand for technology products, coupled with Taiwan's robust economic growth prospects, bodes well for the index's future performance. However, investors should be aware of potential risks, such as geopolitical tensions and changes in global economic conditions, which could impact the index's performance in the short term. Overall, the TWI remains a strong investment option for those seeking exposure to the dynamic and growing Taiwanese economy.

Taiwan Weighted Index: Poised for Continued Growth

The Taiwan Weighted Index (TWII) is expected to maintain its bullish trend in the foreseeable future, supported by strong fundamentals and positive market sentiment. The index has been outperforming its regional peers, driven by a robust economy, healthy corporate earnings, and increasing foreign inflows. The recent technological advancements and government initiatives have further boosted investor confidence in the Taiwan market.


From a technical perspective, the TWII has broken above a key resistance level and is currently consolidating its gains. The moving averages are trending upwards, indicating a positive momentum. The Relative Strength Index (RSI) is above 50, suggesting that the market is not overbought and has room to run. Support is expected at the 200-day moving average, which is currently around the 12,500 level.


Macroeconomic indicators are also supportive of the TWII's bullish outlook. Taiwan's GDP is forecast to grow by over 4% in 2023, supported by strong exports and domestic demand. The inflation rate remains under control, and the Taiwan dollar is stable against major currencies. The central bank has maintained a dovish monetary policy, which has kept interest rates low and stimulated economic activity.


Overall, the Taiwan Weighted Index is well-positioned for further gains. The strong fundamentals, positive market sentiment, and supportive technical indicators suggest that the index is likely to continue its upward trajectory in the coming months.

Taiwan Weighted Index: Latest Developments and Company News

The Taiwan Weighted Index (TWII), a key indicator of the overall performance of the Taiwanese stock market, has been on a steady upward trajectory in recent months. The index closed at 17,586.18 on March 8, 2023, marking a year-to-date gain of approximately 15%. Notably, the TWII has been outperforming other major global indices, reflecting the resilience of the Taiwanese economy amid global uncertainties.


In terms of company news, TSMC, the world's largest contract chipmaker, reported strong financial results for the fourth quarter of 2022. The company's revenue surged by 42.8% year-over-year to $20.23 billion, driven by robust demand for its advanced semiconductor technologies. TSMC's positive performance has a significant impact on the TWII, given its large market capitalization and weight within the index.


Another notable company update is the merger between Hon Hai Precision Industry (Foxconn) and Sharp Corporation. The transaction, which was completed in 2022, has created a global electronics giant with a strong presence in key markets such as smartphones, TVs, and automotive components. The merger is expected to bring synergies and enhance the competitiveness of both companies, potentially benefiting the TWII in the long run.


Overall, the Taiwan Weighted Index has been performing strongly and is supported by positive company news. The robust financial results from major companies and the strategic initiatives within the corporate sector indicate continued growth prospects for the Taiwanese stock market. Investors should closely monitor the index and company developments to make informed investment decisions.

Taiwan Weighted Index at a Crossroads: Risk Assessment in Turbulent Markets

The Taiwan Weighted Index (TWII), a barometer of the Taiwanese economy, has faced heightened volatility amid a confluence of global and domestic challenges. The COVID-19 pandemic, rising inflation, and geopolitical tensions have cast a shadow over the index's performance, prompting investors to reassess its risk profile.


One key factor to consider is the TWII's exposure to global markets. As a major technology hub, Taiwan is heavily reliant on export-oriented industries, making it susceptible to economic downturns in key markets like China and the United States. Moreover, the ongoing chip shortage has exacerbated supply chain disruptions, further impacting the index's performance.


Domestically, the TWII has been navigating a challenging economic landscape. The pandemic has disrupted consumption and tourism, while rising interest rates have weighed on corporate earnings. Additionally, geopolitical tensions with China remain a source of uncertainty, particularly given Taiwan's reliance on the mainland for trade and investment.


In light of these risks, investors should adopt a cautious approach when assessing the TWII. While the index has historically exhibited resilience, the current market environment poses significant challenges. It is crucial to monitor economic data, geopolitical developments, and global market trends to identify potential risks and adjust investment strategies accordingly.

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