VIOT Stock: A Risky Bet for Investors

Outlook: Viomi Technology Co. Ltd American Depositary Shares is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised¹ :
Dominant Strategy : Hold
Time series to forecast n: for Weeks²
Methodology : Active Learning (ML)
Hypothesis Testing : Spearman Correlation
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

Viomi Technology Co. Ltd American Depositary Shares prediction model is evaluated with Active Learning (ML) and Spearman Correlation^1,2,3,4 and it is concluded that the VIOT stock is predictable in the short/long term. Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.⁵ According to price forecasts for 3 Month period, the dominant strategy among neural network is: Hold

Key Points

1. Active Learning (ML) for VIOT stock price prediction process.
2. Spearman Correlation
3. Can neural networks predict stock market?
4. Trading Signals
5. Decision Making

VIOT Stock Price Forecast

We consider Viomi Technology Co. Ltd American Depositary Shares Decision Process with Active Learning (ML) where A is the set of discrete actions of VIOT 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: VIOT Viomi Technology Co. Ltd American Depositary Shares
Time series to forecast: 3 Month

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

F(Spearman Correlation)^6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Active Learning (ML)) X S(n):→ 3 Month $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of VIOT stock

j:Nash equilibria (Neural Network)

k:Dominated move of VIOT stock holders

a:Best response for VIOT target price

Active learning (AL) is a machine learning (ML) method in which the model actively queries the user for labels on data points. This allows the model to learn more efficiently, as it is only learning about the data points that are most informative.⁵ Spearman correlation is a nonparametric measure of the strength and direction of association between two variables. It is a rank-based correlation, which means that it does not assume that the data is normally distributed. Spearman correlation is calculated by first ranking the data for each variable, and then calculating the Pearson correlation between the ranks.^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?

VIOT 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 Active Learning (ML) based VIOT Stock Prediction Model

1. An entity shall assess whether contractual cash flows are solely payments of principal and interest on the principal amount outstanding for the currency in which the financial asset is denominated.
2. A net position is eligible for hedge accounting only if an entity hedges on a net basis for risk management purposes. Whether an entity hedges in this way is a matter of fact (not merely of assertion or documentation). Hence, an entity cannot apply hedge accounting on a net basis solely to achieve a particular accounting outcome if that would not reflect its risk management approach. Net position hedging must form part of an established risk management strategy. Normally this would be approved by key management personnel as defined in IAS 24.
3. Rebalancing is accounted for as a continuation of the hedging relationship in accordance with paragraphs B6.5.9–B6.5.21. On rebalancing, the hedge ineffectiveness of the hedging relationship is determined and recognised immediately before adjusting the hedging relationship.
4. If an entity previously accounted at cost (in accordance with IAS 39), for an investment in an equity instrument that does not have a quoted price in an active market for an identical instrument (ie a Level 1 input) (or for a derivative asset that is linked to and must be settled by delivery of such an equity instrument) it shall measure that instrument at fair value at the date of initial application. Any difference between the previous carrying amount and the fair value shall be recognised in the opening retained earnings (or other component of equity, as appropriate) of the reporting period that includes the date of initial application.

*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.

VIOT Viomi Technology Co. Ltd American Depositary Shares Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba3	B1
Income Statement	Caa2	Caa2
Balance Sheet	Baa2	Baa2
Leverage Ratios	B3	Ba3
Cash Flow	Baa2	Caa2
Rates of Return and Profitability	Ba3	B1

*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. Bessler, D. A. R. A. Babula, (1987), "Forecasting wheat exports: Do exchange rates matter?" Journal of Business and Economic Statistics, 5, 397–406.
2. Hastie T, Tibshirani R, Friedman J. 2009. The Elements of Statistical Learning. Berlin: Springer
3. G. Theocharous and A. Hallak. Lifetime value marketing using reinforcement learning. RLDM 2013, page 19, 2013
4. Chernozhukov V, Newey W, Robins J. 2018c. Double/de-biased machine learning using regularized Riesz representers. arXiv:1802.08667 [stat.ML]
5. Tibshirani R. 1996. Regression shrinkage and selection via the lasso. J. R. Stat. Soc. B 58:267–88
6. M. Babes, E. M. de Cote, and M. L. Littman. Social reward shaping in the prisoner's dilemma. In 7th International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS 2008), Estoril, Portugal, May 12-16, 2008, Volume 3, pages 1389–1392, 2008.
7. V. Borkar and R. Jain. Risk-constrained Markov decision processes. IEEE Transaction on Automatic Control, 2014

Frequently Asked Questions

Q: Is VIOT stock expected to rise?
A: VIOT stock prediction model is evaluated with Active Learning (ML) and Spearman Correlation and it is concluded that dominant strategy for VIOT stock is Hold
Q: Is VIOT stock a buy or sell?
A: The dominant strategy among neural network is to Hold VIOT Stock.
Q: Is Viomi Technology Co. Ltd American Depositary Shares stock a good investment?
A: The consensus rating for Viomi Technology Co. Ltd American Depositary Shares is Hold and is assigned short-term Ba3 & long-term B1 estimated rating.
Q: What is the consensus rating of VIOT stock?
A: The consensus rating for VIOT is Hold.
Q: What is the forecast for VIOT stock?
A: VIOT target price forecast: Hold